Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
SS5 - Balboa Theater
TO: FROM: PREPARED BY PHONE: TITLE: CITY OF NEWPORT BEACH City Council Staff Report August 12, 2014 Agenda Item No. SS5 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Dave Kiff, City Manager— (949) 644 -3002, dkiff @newportbeachca.gov Dave Kiff, Laura Detweiler, and Rob Houston (949) 644 -3001 SS5. Next Steps for the Balboa Theater (5:45 p.m.) ABSTRACT: Council Member Mike Henn, board members of the Balboa Performing Arts Theatre Foundation, President/CEO Steve Beazley, and city staff have worked on a new concept for the use of the Balboa Theater site at 707 East Balboa Boulevard. RECOMMENDATION: Provide further direction towards a Fine Arts Center concept, or another approach, and staff will bring back a more specific action at an evening Council meeting. FUNDING REQUIREMENTS: We believe that bringing the existing building to the open floor /flexible space concept for the Fine Arts Center would cost about $2.84 million, including most soft costs (design, insurance, construction management). Tenant improvements would be another $320,000, with site work at $210,000. The total cost then is estimated at $3.37M. We received this cost information from GKK Works on Friday, August 8th (see Attachment C). A more formal cost estimate may be necessary should the Council wish to pursue this concept further. A conceptual pro forma for the Fine Arts Center suggests about $350,000 in regular operating costs annually, offset by about $150,000 per year in fees and facility rentals, for a net subsidy of $200,000 annually. The first year expenses would be increased by about $60,000 for one -time supplies, tables, and related furnishings. This assumes about 12 special events /performances a year. Please see the discussion section for more information about ranges of events offered. Staffing would consist of 1 full -time recreation coordinator and a part time facilities maintenance worker, a part-time senior recreation leader (35 hours /week), and pooled part-time recreation leader staff (40 hours /week). DISCUSSION: Project History. The Theater is located at 707 East Balboa Boulevard on the Balboa Peninsula, and operated as a movie theater as far back as 1928. The Theater closed in 1992. Today, it is empty with a sand floor, no restrooms, brick walls, no lobby, a deteriorated ceiling (down to studs), and an arched wood roof with holes in it. It is about 6,000 square feet. SS1 In an effort to revitalize the Balboa Village area, the City worked with the then - formed Theater Foundation to have the City purchase the Theater for $480,000 in October 1998 using Community Development Block Grant ( "CDBG ") funds. The City entered into a lease with the Foundation in November 1998 to manage and operate the Theater. The lease was amended three times. In roughly 2011, the City contributed $175,000 to assist the Foundation to complete plans for a large -scale renovation. The estimated cost of the renovation was then $4.8 million in anticipation of configuring the theatre as a full functioning performing arts facility and other amenities. To pay for the renovation, the Foundation intended to use $800,000 from cash on hand as well as $4 million in donations from large donors. The private fund raising was not, however, successful.. In March of this year, the Foundation Board asked the City Council to consider a smaller -scale renovation. The cost estimate then was about $2 million for construction and another $2 million for tenant improvements (primarily seating) as well as theater -ready lighting and sound and for "Year 1" operating expenses. Council members were supportive of moving forward with this concept, but wanted to see a 3rd party business plan for the operations. That business plan is Attachments Al (plan) and A2 (appendices). A city- initiated 3rd party review of the plan is Attachment B (by Mitze Productions). These reviews essentially validated the potential for operation of the theatre principally as a performing arts venue with up to 90 evening events per year; although, the Mitze report also identified a number of risks and caveats to that conclusion. In June 2014, the City asked for a 3rd party analysis of the construction costs to rebuild the theater into a "tenant ready form." GKK Works completed this analysis. GKK Works determined that it would cost $3.3 million dollars to reconstruct the facility to the level suggested by the Foundation. Another $1.8 million would be required to equip and operate the theater. The higher construction cost estimate brought about some soul searching on the Foundation Board as to the Theater's future and most appropriate use. Some Foundation Board members departed the Board, leaving three remaining Board members plus Mr. Beazley. The Foundation's fund raising efforts have been suspended at this time. Council Member Henn, believing a center for fine arts is integral to the long -term prosperity of Balboa Village and a potentially valuable addition to the City's arts and cultural offering, worked with Mr. Beazley and city staff on a new concept. The new concept is a Fine Arts Center focused primarily on arts and arts education, with live performances and films as a secondary priority. The Fine Arts Center concept is described in more detail in Attachment D. Please review this attachment. More About Special Events — Especially Evening Events. Staff and Mr. Beazley have discussed the role of special performances (films and live performances) at the Fine Arts Center, noted herein as Priority 2. The Balboa Village Performing Arts Theater Foundation's operational plan envisioned an extensive list of evening performances up to 90 per year, from a variety of groups. We believe that the Fine Arts Center could accommodate these performances, but as of the time of this writing, we are unsure as to the full staffing, infrastructure and logistical needs of this effort. The range of alternatives and issues includes: • Light — start with 12 or so per year. This is what was analyzed in our pro forma. This allows the City to build support over time for more performances, as well as adding staff (contract or otherwise) to accommodate the programming as the programming warrants. • Medium — A 52 event per year schedule would include movies, live performances, and the special events /receptions associated with large community activities such as the Boat Parade, the NB Film Festival, and more. Mr. Beazley believes that this approach would be achievable from the early days of operations, given that it includes film events and other 2 or 3- evening events tied to community activities. • Robust — the 90 -event schedule as proposed in the original business plan may be attainable over time SS2 Staff has concerns at this point in time that jumping in to this specific schedule may increase the subsidy early on, as well as forgo an important testing period whereby daytime uses are shared with evening uses. We want to make sure that evening uses do not adversely affect our ability to turn the room around for the next morning's programming. In summary, staff is recommending starting light and adding events each year as demand warrants it, and as the building matures into a venue we're comfortable managing. Why a Fine Arts Center? There are several reasons why a fine arts center might work better than other uses at this site, acknowledging that the City would have to fund the Center's operations on a regular basis, just as it might a library branch or another community center. The reasons include: • Arts and arts education programming of this type is likely to be used and desired by area residents. Recreation staff is confident that the site can be fully utilized for City sponsored daytime and community programming needs, and feels it fills a current void for arts related educational and fun activities and programs. • The concept retains a civic anchor to the Balboa Village, instead of using the site for additional retail and /or mixed uses that may not appropriately aid in revitalizing the Village. Civic space is in demand as well, to complement and add flexibility and venues for key special events like the Boat Parade, the Newport to Ensenada race, and other themed events. • The operations of the Fine Arts Center as proposed are generally consistent with existing approvals for the Theater, including the Coastal Development Permit and zoning approvals and would not require further resubmittals or approvals (besides building plans). To start over again to obtain similar approvals for a substantially revised approach would be very expensive and time consuming, with uncertain outcomes. • We expect the Cultural Arts Master Plan to identify an additional need citywide for arts and cultural facility space — for exhibitions, shows, sales, performances, special films, and workshops. • This site, while challenging to get to on summer weekends and having no exclusive parking, remains accessible to residents both on the Peninsula and Balboa Island (via the Ferry), with plenty of parking in the adjacent Balboa Pier lot nearly all year long. In most cases, these same residents do not have easy access to art spaces and local civic spaces (besides the Beek Center and the Balboa Branch library) in the high season. Challenges, questions, and additional details needed. As the City Council considers asking staff and the Foundation Board to pursue this concept further, we wanted to make the Council and public aware of these issues: • We think that a city -owned fine arts center at this location would indeed be valuable to the community, to recreation and arts programming, and to the immediate neighborhood. • Flexibility within the space is critical, with as little built -in structures as possible (except for restrooms, classroom, and storage). The space should be able to be changed significantly within hours of a previous use, and then changed back again. • The operations of the Center will require a subsidy — as do most of our facilities. But there is value in having good community facilities in multiple neighborhoods. The subsidy should include a building repair /capital fund. as this is an old buildina. even if renovated. • Costs of the project will need to be re- validated in the event Council wishes to proceed, inclusive of any additional direction Council provides. SS3 • Community theater or professional theatrical events are not ideal for the flexibility desired (as such events make for very inflexible spaces for long periods of time), and the Newport Theater Arts Center already appears to meet community needs. • The site will always be challenging to get to and to park nearby during busy seasons and busy weekends. • A Fine Arts Center "friends" group or other related group (such as a new iteration of the Foundation) would be helpful to assist in raising funds for special programming that might not otherwise pull its revenue weight. The presence of Lido Live at the Lido Theater would be a significant competitor for certain kinds of live performance bookings, and the Council and the Fine Arts Center's programming would not attempt to compete with that — the key would be to find a way to complement it. We do not at this time have formal feedback from the Arts Foundation, the Arts Commission, the Arts Master Plan, or the Newport Beach Film Festival as to their roles and interest in this Fine Arts Center concept. We look forward to the Council and community discussion about the future of the Balboa Theater site. ENVIRONMENTAL REVIEW: CEQA work has been completed on the Theater project, and permits (including a Coastal Development Permit and a building permit for a previous design) have been issued. Our Community Development staff believes that the issued CDP allows for the Fine Arts Center concept. NOTICING: Noticed according to the Brown Act (at least 72 hours in advance of the meeting). ATTACHMENTS: Description Attachment Al - Business Plan Attachment A2 - Appendices to Business Plan Attachment B - 3rd Party Review of Business Plan by Mitze Productions Attachment C - GKK Works Cost Estimate Attachment D - Proposed Fine Arts Center Concept Plan SS4 ATTACHMENT A -1 BALBOA VILLAGE T H E A T R E Prepared by: A011 (or the AO and Enle toinmenl ndV in., Balboa Performing Arts Theatre Foundation Balboa Village Theatre Business Implementation Plan April 2014 AMS Planning & Research Corp. 107 John Street, Suite 1E Southport, CT 06890 203 - 256- 1616/800 -887 -3282 SS5 Table of Contents ExecutiveSummary ........................................................................................................................................................................... ............................... 3 Missionand Vision ............................................................................................................................................................................. .............................10 Marketplace......................................................................................................................................................................................... .............................12 Programming...................................................................................................................................................................................... .............................16 Competition......................................................................................................................................................................................... .............................21 MarketingPlan .................................................................................................................................................................................... .............................24 Implementation................................................................................................................................................................................. ..............................2 7 StaffingPlan ......................................................................................................................................................................................... .............................28 Governance.......................................................................................................................................................................................... .............................33 Partnerships........................................................................................................................................................................................ .............................34 PrincipalChallenges ......................................................................................................................................................................... .............................36 FinancialAnalysis .............................................................................................................................................................................. .............................37 Conclusion............................................................................................................................................................................................ .............................47 Appendices........................................................................................................................................................................................... .............................47 SS6 Executive Summary The Balboa Village Theatre will be a multi -use facility that will present a variety of programming in an intimate setting, creating a unique and special experience for both patrons and artists. The historic venue will fill a need for the community by providing enhanced entertainment and educational opportunities for the residents of Newport Beach, while contributing to a revitalized Balboa Village. The theatre, to be constructed at 707 E. Balboa Boulevard, is designed by John Sergio Fisher & Associates, and contains a 300 - seat flexible venue that can be used for live performance as well as film /media screenings and social events. This location is the site of the historic Balboa Theatre, which has been shuttered since 1992. The initiative is spearheaded by the Balboa Performing Arts Theatre Foundation ( BPATF), a 501(c)(3) non - profit organization, its current Chairman of the Board Dr. Donald Hecht, and CEO Dr. Steven Beazley. The site is owned by the City of Newport Beach, who will, based on a conditional agreement, renovate the building to tenant -ready condition. It will be leased by BPATF, who will fund the interior building systems and conduct all operations of the theatre. The project has been permitted by both the California Coastal Commission and the City of Newport Beach. Extensive research shows that the 30 -mile drive radius around the site, the theatre's primary market area, has a favorable profile for arts and cultural participation, and lifestyle data indexes show arts purchasing and attendance behaviors at least 25% or higher than the national average for content to be offered at the venue. Additional market research has determined a favorable market for programming, as well as genre preferences, and has been used to build a specific activity model for the theatre. BPATF plans a diverse programming model including film /media screenings, live music performances, and performing arts events, as well as an education program in collaboration with the City of Newport Beach Recreation and Senior Services Department. In addition, partnerships with area organizations, including the Newport Beach Film Festival, ExplorOcean, and Newport Elementary School are in discussion. The theatre will offer a robust membership program, encouraging support for the theatre and providing additional benefits to patrons. The implementation plan for the venue calls for a four -month pre- construction phase and a twelve -month construction and operations implementation phase. During this time, staff will be hired to support the organization and detailed development, marketing, and programming plans will be initiated. Tickets will go on sale four months prior to opening for the first six months of programming. During this time, a twelve member Board of Directors will be recruited to govern the organization. SS7 The pro forma calls for the theatre to have an operating budget of $2.2 Million by the third year of operations. Contributed income from memberships, grants, and private donations will subsidize operations not funded through operating revenues. The information provided in the following plan and the recommendations are intended as a guide to support planning for programming and operation of the Balboa Village Theatre. Its goal is to help BPATF achieve success. With dedication, focused leadership, and the necessary resources, BPATF will ensure a successful venue that can serve the community, help revitalize downtown, and be a source of civic pride well into the future. �Y] Background Venue History The Balboa Village Theatre, originally known as The Ritz Theatre, was constructed in 1928 by J. P. Greeley and functioned as a venue for vaudeville and small theatre productions. It was modified in the 1930s to present movies and in 1939 was renamed the Balboa Theatre. It served as a movie -house from the 1940s to the 1960s, finding success throughout the golden age of cinema, and by the mid- 1970s, the theatre had turned into a popular revival /art film house. The theatre began to decline in the late 1980s due to competition from nearby megaplexes. The most recent operator, Landmark Theatres, closed the facility in 1992 and it was stripped of all its interior furnishings and infrastructure. The Balboa Performing Arts Theatre Foundation In 1996, a group of citizens established the Balboa Performing Arts Theatre Foundation ( BPATF) with the goal of renovating the theatre for the community. In 1998 the City of Newport Beach (City) purchased the building for $480,000, and BPATF entered into a twenty -five year lease with the City to renovate and operate the facility until 2023. BPATF developed a restoration plan with the goal of re- opening the theatre in 2008. The City contributed $175,000 towards the initial architectural plans for the renovation of the facility, completed by John S. Fisher & Associates (JSFA), with BPATF funding the remaining design development, administrative, and programming costs through Board and individual community donations. BPATF developed a vision for the facility and offered limited programming and events at other sites during the intervening years. Unfortunately fundraising for the renovation stalled and by 2013, the venue still remained closed. In 2013, the City issued a $3 Million challenge loan to jump -start the project, seen as a key driver to the revitalization of the Balboa Peninsula. Conditions of the loan included the hiring of a Chief Executive Officer (CEO), establishing a Board of Directors, and creating a business plan. In June of 2013, AMS Planning & Research Corp. (AMS) was hired as a consultant to complete a situation analysis and develop a business model for the theatre under a limited scope and ... budget. In September of that year, Dr. Steven Beazley was hired as the new CEO and in October Dr. Donald Hecht became the new Chairman of the Board. Since October 2013, Beazley and Hecht, with assistance from JSFA and AMS, are spearheading a new vision for restoration of the facility, now called the Balboa Village Theatre. AMS's expanded scope under the new leadership included a full market analysis and the implementation plan included in this report. The renovation plan includes a new, updated facility design, a new market -based programming vision, and a well thought out, SS9 conservative business model based on extensive market and industry research. Current Leadership Dr. Donald Hecht. Chairman of the Board Hecht is an engineer, educator, and community leader. In 1978, he founded California Southern University, a leader in online education, where he currently serves as a director on the Board of Trustees. Hecht holds a doctorate in management science from Columbia University and a degree in engineering from New York University. Hecht also serves on the board of Pacific Symphony, based in Santa Ana, CA, and Big Brothers Big Sisters in Prescott, AZ. Dr. Steven Beazley. Chief Executive Officer Beazley became CEO of BPATF in September 2013. He is the former President and CEO of the Orange County Fair and Events Center, a position he held for four years, following ten years as the Senior Vice President. Beazley's signature project while in executive leadership at the OCFEC was the reopening of the Pacific Amphitheatre, an 8,500 seat outdoor venue closed for nearly a decade due to litigation. Beazley led the facility design, business planning and the rebranding of the venue to Southern California audiences. It is now ranked the #1 venue for its size during the summer months in North America. Professional Services AMS Planning & Research Corp. LAMS). Management Consultants AMS is a highly experienced arts management consulting firm based in Southport, CT that has provided counsel, planning, and research services to hundreds of arts and cultural organizations. Since its founding in 1988, AMS has gained national recognition for its counsel on a range of important planning projects in all areas of the country. The firm conducts feasibility studies for arts programs and facilities, leads strategic planning efforts, including merger and collaboration studies, represents owners of new facilities during planning, design and construction, creates community cultural plans, advises on marketing strategies, evaluates grant programs, and authors research reports and White Papers on industry trends. Clients range from large philanthropic foundations to ad hoc citizen's committees in small cities and towns. Numerous government agencies have relied on AMS for critical SS10 recommendations on the development of over $5 billion in new construction, renovation, and restoration of capital facilities.' John Sergio Fisher & Associates (JSFA). Architect JSFA is a full- service architecture, planning, and theatre consulting firm. 1SFA's projects range from cultural, educational and community facilities to commercial and medical office buildings to hotels and multi - family housing with a focus on theatres, performing arts centers and entertainment facilities. The firm is based in Los Angeles and San Francisco, CA. JSFA specializes in the programming and design of new, restored and renovated theatres, as well as visual arts, performing arts, and entertainment facilities, both public and private. The firm has designed over 150 performing arts venues for drama, musicals, dance, opera, orchestra, band, choral concerts and recitals through the U.S., Europe and Asia. JSFA's built projects have served a range of requirements from educational and amateur to repertory and touring professional productions. 1SFA has won numerous design awards, including 31 AIA awards. In 19981SFA received the Annual AIA /SFV Architecture Firm Award. The firm's work has been published regionally, nationally, and internationally. JSFA has been recognized for and prides ' AMS Planning & Research. http: / /www.ams- online.com/consulting_services.php Accessed March 2014. itself on its design capabilities within the context of master planning goals and budget and schedule constraints.' Facility Design The Balboa Village Theatre is located at 707 E. Balboa Boulevard in Newport Beach, CA. The building is currently an empty shell with structurally unsound walls, holes in the roof, and a sand floor. The redesign for the renovated Balboa Village Theatre (see Appendix A) was been developed by JSFA in 2013 and includes the following features: • Restored front facade with a new marquee • Front lobby and restrooms for patrons • Performance /film venue with flexible seating for 300 people for performances and approximately 125 people for seated receptions or other activities needing a flat floor space. • Backstage green room and dressing room area with restrooms for performers • Seismic upgrades and infrastructure enhancements required to meet current building codes 'John Sergio Fisher & Associates. http: / /www.isfarchs .com /professionalprofiles.htmi. Accessed March 2014. SS11 Improvements will be made to the building's shell including upgrading the floor, ceiling, and roof to address structural and seismic considerations, as well as fire sprinkler, lighting, mechanical, electrical, and plumbing improvements needed to meet code requirements. Improvements to the building shell are designed to make the building "tenant- ready." The exterior of the theatre will remain intact with only minor modifications including fresh paint in the existing color scheme, new windows in the current locations, a box office window or windows on the left side of the building and advertising window boxes on the right hand side of the theatre entrance doors. A new theatre marquee will be designed in the spirit of the original 1920's marquee. The interior build -out will include a lobby with a concessions area and restrooms for patrons. The theatre will have a capacity of 300 people. Seating is flexible with 165 fixed stadium -style seats and 135 portable seats that can be reconfigured to produce arena, thrust, proscenium, or flat floor configurations, depending on the needs of the activity. The venue will be suitable for live performance, film, educational activities, and social events; however certain genres of performing arts, such as dance or musical theatre, will be limited in size and scope of performance due to the size and configuration of the stage and lack of wing space. Theatre systems will include a catwalk, theatrical lighting, audio - visual equipment, a retractable film screen, a digital film projector, acoustic drapery, modular staging, and modular risers for seating. The modular stage will consist of multiple 24 -36" high theatrical platforms that can be reconfigured to accommodate the size needed for each performance. A state of the art sound system is integral to the design in order to attract high caliber artists to the venue and create a valued patron experience. All of the theatre systems would be temporary installations and would be removable should the building ever be used for purposes other than a theatre. The backstage "green room" area can also be used as dressing rooms and will include two restrooms for performers. BPATF plans to rent hotel rooms to use as additional or upgraded dressing rooms when required or for artist accommodations when needed. The Balboa Inn, located directly across the alley behind the theatre, would be a potential partner for this use. The Community The Balboa Peninsula The Balboa Village Theatre is located on the Balboa Peninsula, bordered on the east by Newport Harbor and Balboa Island and on the west by the Pacific Ocean. The theatre is near the ferry crossing from Balboa Island and is part of Balboa Village, one of SS12 five neighborhoods targeted for revitalization by the City of Newport Beach. Balboa Village, previously the site of the Rendezvous Ballroom, was once a popular entertainment destination, and still draws heavy tourist and vacation rental activity in the summer months. Nearby attractions include the Balboa Fun Zone, the Balboa Pavilion, Balboa Pier, Newport Pier, and The Wedge, a popular surfing spot. The ExplorOcean /Newport Harbor Nautical Museum, which is planning its own large -scale renovation, is located across the street from the theatre site. Parlcine Based on interviews with project leaders, stakeholders, and City representatives, parking in Balboa Village is a chief concern among residents. Parking is primarily constrained during the summer season, when tourists visit the beaches, park their cars while on charter trips to Catalina Island, or pursue other entertainment options. Though parking studies have shown the parking supply is adequate for all but roughly 30 -35 peak days during the year (summer weekend S),3 a perception of parking congestion on the peninsula is prevalent in the market area. ' Nelson /Nygaard. "City of Newport Beach: Balboa Village Parking Management Plan, Final Report." May 2012. City of Newport Beach Support and Revitalization In 2010 the City took a large step towards the revitalization of Balboa Village with the creation of the Neighborhood Revitalization Committee (NRC). The NRC was created to study and develop recommendations for the City Council on improvement projects in five neighborhoods, including Balboa Village. A Citizen Advisory Panel (CAP) was appointed in 2011 to set a vision and implementation strategy for the revitalization. The Balboa Village Theatre renovation is considered by many stakeholders to be a vital element in the revitalization of the Balboa Village, and it was included in the resulting Balboa Village Master Plan, issued September 2012, as a catalyst for economic development. The report recommends the City consider supporting and facilitating the construction of the Balboa Village Theatre and ExplorOcean.° Another area of recommendation in the resulting Master Plan calls for the City to consider various measures to address parking issues, including a parking management plan, proposals for additional parking, new meters, and parking fees to encourage use of public lots. The establishment of a commercial parking benefit district in Balboa Village to create a revenue source for ° City of Newport Beach. 'Balboa Village Master Plan." September 2012. SS13 new activities in Balboa Village is also recommended in the report. In March of 2013, the City established the Public Arts and Cultural Facilities Fund, intended to establish a funding source for the acquisition, installation, management and maintenance of Public Art. The fund will support the development of an arts promotion master plan for the City, as well as acquiring land for, and the construction of, arts facilities and instituting cultural promotion projects. Funding will be derived from 2% of the unallocated public benefit fees received from development agreements in the designated Cultural Benefit District, estimated at $954,000 over the next several years.' Grants made from the fund are currently for capital projects, not for operating support. 5 City of Newport Beach Resolution No. 2013 31. Found at: http://ecms.newportbeachca.gov/Web/0/doc/479347/Pagel.aspx Mission and Vision Mission To establish and sustain a theatre for the presentation of the performing arts, film and other events for the most diverse audience possible, as often as possible. In this way, we will strengthen, nurture, enrich and enlighten the lives of those we touch and make our community a better place, one great performance at a time. Vision The Balboa Village Theatre is a multi -use facility that will present a variety of programming, primarily focused on live music performances, film screenings, special performance events, and educational programs that appeal to the tastes of the local community. The theatre will provide high quality performances in an intimate setting, creating a unique and special experience for both patrons and artists. SS14 The theatre will fill a need for the community by providing enhanced entertainment and educational opportunities for the residents of Newport Beach. The theatre will contribute to a revitalized and attractive Balboa Village by attracting visitors, investment, and development to the area, increase the economic viability of the Village and raise neighborhood property values. The theatre will operate in a sustainable manor, with no capital debt, and have a well thought out business plan and strategy. Principal Strengths and Opportunities BAPTF's primary strengths are: • Strong support from local government and community leaders • A versatile venue that can be used for a variety of programming • A central location • The historical identity of the building • The potential partnership with the City's Recreation & Senior Services Department (RSSD) to provide educational programming for youth in Newport Beach. The key opportunity for the theatre is to develop a reputation as a quality venue, where patrons want to attend in order to have an intimate performance experience, and where artists are attracted to the venue to perform. The arts education program has the opportunity to engage the youth of the community and provide additional arts- related programming through the RSSD. There is an opportunity as well to generate positive economic impact on the Balboa Village, drawing audiences in the evening, which will support the growth of restaurants and other local businesses and generate additional parking revenue for the City. Success in the Community In July 2013, AMS conducted a series of interviews with project leaders, stakeholders, and City representatives (see Appendix B) focused on determining the Foundation's and the community s goals for the project and the optimal nature and level of activity that will take place in the facility. Based on this research, the key determinates of success for the Balboa Village Theatre in the community will be: • The ability to run as a sustainable, business -like entity • The contribution the theatre makes to the revitalization of the Balboa Village • Maintaining a high level of diverse and high quality programming that attracts large audiences SS15 • Gaining a reputation as a special, unique, intimate venue that defies its size; a venue that is different from anywhere else in the market • Becoming a venue that the community uses, talks about, and points to with pride. Marketplace In January 2014, AMS completed a Market Area and Lifestyle Analysis to help BPATF understand the target market area (see Appendix E). Market Area Characteristics In the report, AMS considered three market areas: 1) the City of Newport Beach, CA, 2) Orange County, CA, and 3) a 30 -mile drive radius from the Balboa Village Theatre. Demographics The 30 -mile drive from the Balboa Village Theatre has a total estimated population of 4,694,716 in 2013, which is a slight increase (2.5%) from the population recorded from the Census in 2010. The growth rate of the City of Newport Beach, estimated to be at 3.9 %, is the largest growth rate observed in the three areas of examination. The rate of population increase for all three areas of examination is projected to grow in the coming years, with the City of Newport Beach projected to see the largest growth at 6.2 %. The 30 -mile drive from the Balboa Village Theatre is expected to see an increase in population at 4.2 %. SS16 SUMMARY OF KEY DEMOGRAPHICS Variable Newport Beach, CA Orange County, CA Balboa Village Theatre 30 -Mile Drive 2013 Estimated Population 88,286 3,105,680 4,694,716 2010 Census Population 84,945 3,010,232 4,580,932 Median Age 44.9 36.7 36.1 %Generation Y(9-23 yrs) 16.1% 21.1% 21.5% % Generation X(24 -44 yrs) 25.8%1 27.6% 27.8% % Baby Boomers (45-65 yrs) 29.9% 26.2% 25.7% % Mature (65+Yrs) 19.9% 12.4% 12.0% Median Household Income $97,030 $71,193 $65,967 %over$75,000 59.7% 47.4% 416% %with College Degree 61.7% 36.3% 32.3% Households with Children 21.1% 37.8% 39.0% %Black /African American 0.8% 1.7% 4.3% %Asian /Pacific Islander 7.6% 19.2% 18.1% %Hispani c (all races) 7.7% 34.3%1 40.2% Income and Education Almost 62% of the population of the City of Newport Beach has a college degree and the City has a median income level of $97,030. Of residents within the 30 -mile drive from the Balboa Village Theatre, 32.3% possess at least a college degree and the area has a median income level of $65,967. % 2013 EST. ADULTS (25 +( BY EDUCATION LEVEL Doctorate Degree Professional school Degree Masters Degree Bachelors Degree Associates Degree [i Same college, No Degree Nigh SthoalGOtluate (Or Getl) 91 Less Than Nigh School (a -111 10% 15% 20% 25% 30% 35% 40% o% 5% %OFAOULTS(25e) In comparison, 30.5% of residents in the State of California have a college degree, and the median income is $61,400. Income and educational achievement have been tested and proven to be important indicators of interest in, and the propensity to participate in, arts and cultural activities. From this data it can be inferred residents within the 30 -mile drive radius would have a similar or slightly higher interest in arts and cultural activities, with the City of Newport Beach market area showing a high propensity to participate. Lifestyle Analysis To further test this hypothesis, AMS utilized the PrizmNE market segmentation system developed by The Nielsen Company to SS17 understand behavior in the market.' The analysis system classifies every household in the United States into one of 66 unique market segments. Each market segment consists of households that are at similar stages in their life cycle and exhibit similar purchasing patterns, financial behavior, and demands for products and services, including cultural activities Almost 72% of the households present in the 30 -mile drive area fall into one of ten segments. Overall, there is representation from all 66 PrizmNE segments in the marketplace, indicating a variety of socioeconomic status. This indicates that although there is diversity in terms of socioeconomic statuses; the market itself clusters into a few dominant segments. PrizmNE profiles can be indexed against the profiles of consumers of products and services, providing a measure of the likelihood that a household will exhibit a certain lifestyle attribute. Affinity for participation in the following arts and cultural activities is above the national average in a 30 -mile drive from the Balboa Village Theatre: • Going to Classical music concerts once a year indexes at 41% more than the national average 6 All PrizmNE data © 2014The Nielson Company. Used under license. Not to be reproduced without permission. • Going to R &B /Hip -Hop/ Rap concerts once a year indexes at 40% more than the national average • Going to live theatre once a year indexes at 36% more than the national average • Going to Rock /Pop concerts once a year indexes at 32% more than the national average • Going to a live music /dance performance once a year, as well as being a "regular movie goer," all index at 27% more than the national average • Belonging to an arts association (73 %) and buying Latin music (47 %), Classical music (41 %), or Jazz music (40 %) once a year were the other top indexing arts and cultural activities for the 30 -mile drive area. Please see Appendix E for more detail on the behavioral characteristics of the top PrizmNE segments for the 30 -mile drive area, as well as the corresponding Social and Lifestage Groups. Market Area Summary The market area surrounding the Balboa Village Theatre has a favorable profile for arts and cultural participation. Moreover, residents of the defined market area closer to the theatre (i.e., SS18 the City of Newport Beach) exhibit significantly more favorable attributes associated with arts participation. The demographic characteristics, when coupled with the lifestyle data, and the indexes of arts and cultural interests at least 25% or higher than the national average, indicate that there is the propensity in the market to participate in arts and cultural programs at the theatre. Programming Demand A more detailed understanding of demand for specific types of arts and cultural programs was examined through a Primary Market Area Survey (see Appendix F). The survey provided insight into the potential level and types of programming, pricing, and membership options for the Balboa Village Theatre Key observations from the survey were: • Featured performer(s) /group(s) is the most influential attribute in the decision to attend a live music concert, while date and time of the film is the most influential in the decision to attend a film screening. • For live music concerts, respondents attend slightly less on an annual basis than they do film screenings, however, they indicated that they are willing to travel twice the distance to attend a live music concert when compared to a film screening. • Those who had heard about the Balboa Village Theatre prior to taking the survey were almost unanimous in their support for a renovation. • Classic rock and popular music/Top 40 were the types of live music concerts that most, who favored the renovation, indicated that they were at least "somewhat likely" to attend. • Contemporary/first run films and independent films were the types of film screenings that most who favored the renovation indicated that they were at least "somewhat likely' to attend. • Workshops and instructional classes for adults, as well as lectures, were the educational activities that most who favored the renovation indicated that they were at least "somewhat likely" to attend. • Reduced admission /ticket prices, parking benefits and priority access to advance ticket purchases were the most important benefits to those who currently receive these benefits as a part of their membership to an arts, entertainment, or cultural organization. SS19 Tourism Newport Beach's primary tourist season is from Memorial Day to Labor Day. According to a Visit Newport study,' visitors to Newport Beach are primarily from in state, have an average household income of $123,400 and are married. The average age of a visitor is 38.9 years. Most visitors (88.3 %) are day- trippers, and report spending an average of $55 per day. Tourists primarily come to Newport Beach for the shopping, dining, and the beach. The theatre would provide an additional entertainment option. BPATF is in discussions with local vacation rental management companies to explore theatre tickets being included in vacation rental packages. This could become an effective cross - marketing strategy to attract vacationers looking for nighttime activities while vacationing in Newport Beach 7 Visit Newport Beach, Inc. "Marketing Plan 2013/2014." Accessed August 2013. http:/ /www.visitnewportbeach.com /wp- content /u p loads / 2013 /07 /Marketing - Plan -Fi na I.pdf Programming Activity Profile Activity in the new venue would begin at an introductory level for the first two years of operations and then increase in Year 3 to its projected level for ongoing operations. Additional live performances would be added in Year 5 after the venue's reputation and programming mix is established. Activity in the venue will be presented by three categories of users: 1) BPATF itself, 2) Not - for - profit organizations, government agencies, and educational institutions, and 3) commercial enterprises or private individuals. BPATF, the primary user, will present a series of live performances, special events, and film screenings, the later in partnership with a secondary organization, potentially the Newport Beach Film Festival (NBFF). Presentations and events by outside organizations in the second two categories are considered rental activities. SS20 With the addition of BPATF's planned educational program, the Balboa Village Theatre would become a heavily utilized venue, by industry standards, in Year 5. Balboa Performing Arts Theatre Foundation r BPATF Presents Year Year Year Year Years Film/Media 23 23 29 29 29 Live Performance 70 70 94 94 119 Non - Perf/Class/TechlRehearsal 0 0 0 0 0 Meefngs /Social Events 4 4 6 8 8 Subtotal, SPATF Presents 97 97 129 131 156 Non- roftlGovt/Education Film/Media 31 31 31 31 31 Live Performance 9 9 9 9 9 Non- PerflClass/TechlRehearsal 41 41 41 41 41 Meetings/Social Events 16 16 16 16 16 Subtotal, Nonprofit/GovtlEducation 97 97 97 97 97 CommerclallPrlvate Film/Media 0 0 0 0 0 Live Performance 2 2 0 0 0 Non - Perf/Class/TechlRehearsal 0 0 0 0 0 Meetings /Social Events 8 8 10 10 10 Subtotal, Commercial/Private 10 10 10 10 10 Total PerformanceLim Scmenin 135 135 163 163 188 TOTAL USE DAYS Non. education 204 204 236 238 263 TOTAL USE DAYS (With on-site Education 212 1 21 1 256 1 258 283 BPATF Presents BPATF presentations and educational activities are the expected primary use for the venue. Presentations for the season include film screenings, music concerts, and other live performance special events. Production Typologies In order to create a flexible operating model, AIMS and BPATF worked to develop a series of production typologies. These typologies represent presentations in a diversity of performance categories and this setup will allow BPATF to test the sensitivity of its programing mix. Based on results from the Programming Survey and other factors such as associated presenting costs, the following programming typologies were created: Film /Media • Documentary: A series of documentary films such as current Oscar nominees, topics of recent interest in the community, or those focusing on music or other live performance related to BPATF's other programming. • Independent /Classic /Art House: These genres of film provide potential film series in future years. • Family /Children's: Films appealing to youths under 18, focusing on classic family- oriented films, rather than first- SS21 run. These films would a specific series targeted towards families living in and visiting Newport Beach in the summer months. Balboa Performing Arts Theatre Foundation r '-• •r r Year Year Year Base Year Year Avera e Film- Documentary Film - IndependentlClassiGForeign Film - Family /Children's 7 7 7 7 7 0 0 6 6 6 16 16 16 16 16 Total Showings 23 23 29 29 29 Live Performance • General Interest: Concert programming that appeals to a wide variety of the market, such as pop, singer /song- writer, and classic rock artists. The options for touring acts in this category for venues of this size is somewhat limited, as artists fees will be more costly; however demand for tickets will be greater. These programs will likely have the highest ticket prices on average. • Specialized Interest: Performances from artists in more focused genres, such as adult contemporary, alternative, Jazz, R &B, Bluegrass, Country, Folk, or Classical music. These genres also ranked high in demand in the market and add diversity to the programming mix. Artists in these genres are more common to venues of this size, as they have more reasonable fees while still commanding fairly high ticket prices. • Young Adults: This category consists primarily of indie rock artists that appeal to a younger demographic. Ticket prices are lower and the programming will add diversity to the audience base. • World: Artists in this category are particularly associated with a specific region, culture, or country. Demand in this category is lower in the target market, however there is some interest and BPATF may include some world music programming in its season to increase programming diversity and reach specific segments of the market area. • Local /Regional: The Orange County area has a wealth of talented local and regional artists, including cover and tribute bands, as well as artists performing their own music. Local and regional artists will have lower costs associated with the performance, allowing BPATF to keep ticket prices low, while still presenting quality talent. This category will also include the OC Music Awards Concert Series: The Best OC Based Music. This series will include 10 -12 shows showcasing the winners in each genre from the annual OC Music Awards that take place each March. Each category winner will receive a booking date at the theatre. This series will be in partnership with the OC Music Awards. SS22 • Family Focused: These events include nationally and regionally touring educational theatre companies, musicians, and variety acts that appeal to youth under 18 and their family members, as well as student and other youth groups in the community. Family focused events would be a specific series of events distinct from the primary season, and would be scheduled to align, as opposed to compete with, other family focused community events. • Special Performance Events: This category includes theatre, comedy, variety, and other non - musical performing arts events. Due to the size and configuration of the theatre, touring theatre acts will have smaller cast sizes (average 1 -4 people). Tickets for special perform- ance events will have the largest range of ticket prices, as they will be contingent on the type of act. Balboa Performing Arts Theatre Foundation l • Year 1 Year 2 Year 3 Base Year 4 Year 5 1AY!pa e Performance- General Performance- Specialized erformance-Young Adults Live Performance-World Live Performance- Local /Regional Live Performance- Family- Focused Live Performance- Special Events Live Performance- Lectures 6 6 10 10 12 16 16 22 22 28 6 6 9 9 13 5 5 7 7 10 16 16 20 20 24 8 8 10 10 12 6 6 a 8 10 7 7 8 8 10 Total Performances 70 70 94 94 119 • Lectures: A lecture series would include popular authors, filmmakers, explorers, scientists, educators and performance artists, among others. Rental Activity Non - profit /Government /Educational Use The indoor venue will also be available for rental by local not -for- profit organizations. AMS administered a potential user survey to over 50 area artists and arts organizations and follow -up calls were made to key organizations. Of the 24 respondents, seven (including NBFF and ExplorOcean) indicated they would rent the venue for performances or classes if it fits their needs; however, overall there does not appear to be a strong committed market for non - profit performance rentals, as larger nearby arts organizations have their own venues. For this reason, rental use is not featured heavily in the activity model. AMS's survey revealed that the Newport Beach Film Festival (NBFF) and ExplorOcean are the primary potential users of the Balboa Village Theatre. Both of these organizations have indicated active interest in using the venue and have provided levels of intended annual use. The activity profile includes ticketed events by NBFF, which has proposed to utilize the venue in April for ten days of screenings and events during its annual festival with additional time allotted for setup and removal of equipment. The profile also includes projected use by ExplorOcean for film and educational events. SS23 The activity model also includes fourteen days of use by outside not - for - profit, government, or educational renters for non- performance events. These may include rehearsals, set -up and strike of productions, classes, meetings, school - related activities, and fundraisers or other social events. For example, BPATF is in discussions with Newport Elementary School to explore existing and new school programs that may utilize the theatre space. This partnership and outreach could, in the future, extend to other schools in the Newport -Mesa School District. Commercial /Private Use While not the primary focus for BPATF, the facility may also be rented on occasion for commercial or private events. Examples would include private performances, lectures, corporate meetings or training, wedding receptions and private parties or receptions. Levels of projected commercial /private use in the activity model are based on expected venue availability and similar rental use at comparable venues of similar size and type. Education Program The projected education program is based on a conservative estimate of educational classes and camps organized in partnership with the RSSD. The exact terms of this partnership are still to be determined but the current assumption is that BPATF will provide curriculum, instructors, space, and oversight. RSSD, in exchange for a percentage of gross revenue, will provide administrative functions, such as marketing, fee collection, and payment of instructors. RSSD will also provide space in City facilities for a portion of the classes offered. BPATF will hire a part-time education program coordinator to develop and to provide oversight for the program. While the actual curriculum will be developed during the implementation phase, classes are expected to include acting, musical theatre, technical theatre, dance, visual art, film, and vocal training. These categories have the highest levels of interest in the community, based on results of the market survey conducted by AMS. Classes may be offered for both youth and adults. Projected educational activity for Year 3, the base year of operations, is 52 class sessions with each class including five total hours of instruction over a period of five weeks. 36 of the class sessions will be beginner or intermediate level and take place in other City facilities. Sixteen advanced classes would take place at the Balboa Village Theatre. Educational programming may take place on the same day as a performance or rental activity, but are considered separate use days in the activity model for clarity. At an estimated four hours of class -time per "use day," fifteen total use days of education activity are projected for the Balboa Village Theatre, with remaining educational programs taking place off -site. SS24 Limitations Due to the nature of the tourist activity on the Balboa Peninsula and concerns over parking availability in the summer months, BPATF will have restrictions on programming during the summer that are dictated in its Coastal Permit agreement. Between Memorial Day and Labor Day, performances may not be scheduled before 7:30pm on weekdays and before 8pm on weekends. These restrictions were taken into account in the activity profile. Competition Similar Venues in the Market Area Within the market area, a 30 -mile drive radius of the Balboa Village Theatre, AMS identified 39 music venues, 14 live performance halls, 18 college or university venues, 29 movie theatres, 20 producing theatres, 8 museums, and 2 theme parks currently operating (see appendix G). The exact number of facilities continually fluctuates due to venue openings and closings. These venues and their programming would be potential competition for patron entertainment dollars as well as for booking touring artists. Primary Competition Based on location, programming, and attendance reported by a sample of potential Balboa Village Theatre patrons in the Potential Attendee Survey (see Appendix D) and in the Programming Survey (see Appendix F), the primary competitors in the 30 -mil drive radius are: Film /Media • Multiplexes: AMC Theatres, Regal Cinemas, Edwards Theatres SS25 • Regency Theatres -Lido Theatre, Newport Beach • The Port Theatre, Corona Del Mar Live Performance • The Honda Center, Anaheim • Staples Center, Los Angeles • Verizon Wireless Amphitheatre, Irvine • Segerstrom Center for the Arts, Costa Mesa • South Coast Repertory, Costa Mesa • Laguna Playhouse, Laguna Beach • OC Fair & Event Center, Costa Mesa • The Observatory, Santa Ana • The Coach House, San Juan Capistrano, CA In addition, there are numerous nightclubs and bars in the 30- mile drive radius; however there is only a limited presence of live music or performances in the area immediately surrounding the Balboa Village Theatre. Market Opportunity The Balboa Village Theatre's primary market advantage will be its flexibility and ability to offer a diversity of programming. Unlike other venues that are focused on a specific performing type or genre of arts programming, BPATF is able to present a wide mix of programming options that can appeal to different segments of the population. Its size and configuration makes the venue flexible, so it may be used for film, lectures, live music, family programming, performing arts, or special events. Its ability to adapt to market demand will help it to remain successful in the future. However, in order to mitigate competition, BPATF will need to provide a distinctive experience in order to attract patrons and touring acts to the venue. Film /Media For film /media programming, BPATF will not compete directly on programming with the large megaplexes in the area or specialty theatres, such as the Port Theater in Corona del Mar, which primarily show first -run films The closest cinema to the venue with specialized programing, the Regency Lido Theatre, focuses on independent and foreign film, offers a series of surf films in the summer. and shows extreme sports related films. The theater also features Oscar - nominated and other first run films. Instead BPATF will fill a programming hole in the market, focusing on documentary films and classic family - friendly film programming. Documentaries may be focused on Oscar nominees, topics of recent interest in the community, or on music or other live performance topics that are related to BPATF's other programming. SS26 Live Performance For live performance, the patron and artist experience are what will set the venue apart. The primary live performance competitors in the market area are in general much larger facilities, with concert venues ranging from 971 to 18,900 seats and theatre venues ranging from 300 to 600 seats. In this market, the Balboa Village Theatre will capitalize on its size. At 300 seats, it has the opportunity to provide something truly special, an intimate performance experience. Comparable venues around the country consider this intimacy their most prized offering, where artists and patrons feel the performance is "in their living room." At the Balboa Village Theatre, no seat will be farther than 55 feet from the artists on the stage and patrons will value the intimate relationship with the artist. The size will also open up the market to a wide variety of artists who prefer to play in smaller, more intimate venues, or who may not be on large arena tours at the time. The two venues of similar size in the market are the Observatory's Constellation Room, at 250 seats and The Coach House in San Juan Capistrano, at 480 seats. Performances at the Constellation Room focus on rap, hip -hop, hard rock; different genres and a different audience than the Balboa Village Theatre will be targeting. The Coach House will be more similar in terms of intended programming, however it is 28 miles from the Balboa Village Theatre site. BPATF will be able to target those in the market that do not want to travel out of the Balboa Peninsula area for entertainment, or who will be interested in the more intimate experience that the 300 -seat venue can provide. Partnerships One strategy to mitigate potential competition from the local venues will be to seek out partnerships with neighboring venues. Partnerships may be in the form of joint marketing, marketing reciprocity agreements, co- presenting events, or working together on community initiatives. SS27 Marketing Plan The Venue It will be important to market the Balboa Village Theatre itself to the community and potential donors. This is considered institutional marketing and is part of general administrative expenses. Though the full venue promotional plan will be created by the Marketing Director, in the implementation phase it is assumed that BPATF will create basic venue informational materials prior to opening, such as venue and lobby signage, brochures for general information about the venue, membership, sponsorship, and event rentals, donor forms, volunteer recruitment signage, etc. These standard materials will be updated periodically as needed. Additional institutional marketing would include signage, brochures, announcements, and ad placements that promote an entire season or the venue itself. These will be most important in the pre- opening and first season phases to introduce patrons to the new venue. Products BPATF will have the following six categories of "products" that it will market to the public. Tickets to Live Performances and Film Pricing Strategy Average ticket prices for each of the eleven programming typologies will be determined based on the results of the primary market research conducted in the area. For most typologies, ticket prices will be set at the high end of the range of prices normally paid by attendees, as the theatre will be offering the superior experience of seeing the concert in an intimate venue with an excellent sound system. All seats will be premium seats close to the stage. However, ticket prices for "Family- friendly" and "Young Adult' programming will be closer to average rates to encourage attendance in these demographics, and film /media ticket prices will be competitive with other area venues. Advertising /Promotion According to the Market Area Survey, word of mouth was the most common way those in the market heard about live music or film activities that they most recently attended, followed by radio, email blasts, newspapers, and social media. Though the full advertising and promotion plan for live performance and film events will be created by the Marketing Director during the implementation phase, it is expected that the plan will rely heavily on social media, email, radio, and other grassroots and word of mouth marketing. SS28 BPATF is also planning a robust membership program. As this program builds, it is expected that email blasts to members, including early purchasing benefits, will account for a large percentage of marketing and ticket sales. Concessions Pricing Strategy BPATF will work with its outside food and beverage vendor to set prices for concessions that are appropriate for the market and that will cover all concessions costs and provide a revenue source to both the vendor and theatre. Advertising /Promotion Concessions advertising will consist of signage in the lobby at point of sale kiosks. Discounts or special promotions may be offered from time to time in conjunction with membership benefits or with film ticket purchases. Memberships Pricing Strategy Memberships are priced in five different tiers, from $75 to $2,500, allowing membership access to different segments of the market, while not limiting those who wish to support the theatre at higher levels. According to the Market Area Survey data, the average price paid for memberships by respondents who are members of area organizations is $100. Each tier level provides an increasing level of benefits that are of value to the patron, such as priority access to advance purchase of tickets, access to membership -only events and reduced admission /ticket prices, which were indicated in the survey to be the most important benefits to respondents. Advertising /Promotion Membership will be promoted in all season advertising, on the website, and on signage in the venue lobby. A specific brochure will be created describing price levels and benefits. Membership benefits will be part of the public relations strategy, encouraging involvement and support for the new theatre. Sponsorships Pricing Strategy Per -show and annual season sponsorships are negotiated on a per- sponsor basis. Advertising /Promotion Sponsorships are promoted on the website, and in general venue advertising. A specific brochure will be created describing potential sponsor benefits. Sponsors will be acknowledged on all program marketing related to their sponsorship, which also serves as advertisement for the program. SS29 Education Program Pricing Strategy Education fees will vary based on the number and length of classes and materials and instructors needed. Class fees will be comparable to other RSSD class offerings and will be designed to cover cost of the program as well as provide net positive revenue to BPATF. Program sponsorships will help to keep class fees at a level affordable by those in the market. Advertising /Promotion The Education Program will be promoted on the website, in venue signage and in the Newport Navigator. Event Rental Pricing Strategy Rental fees are based on the type of activity taking place in the venue, with different rates for film screenings, performances, non - performance use that does not involve catering (classes, rehearsals, etc.) and meetings and social events that involve catering. Not - for - profit, government, and educational entities receive discounted rental rates, as is standard in the industry. Advertising /Promotion Event rentals are not the main focus of BPATF's mission, so advertising will be focused on making all relevant rental information needed available to interested parties when they inquire. A specific brochure with rental information will be created and information will be included on the website. Market Research BPATF will conduct regular and ongoing market research and analysis to discover any significant changes in the makeup of the community, to understand changing programming desires, and to receive feedback on venue operations, customer service, and the membership program. SS30 Implementation Implementation Timeline The proposed implementation timeline (see Appendix H) outlines a 24 -month process, with a four -month construction planning and fundraising phase, a twelve month construction, staffing, and programming phase, and lasting eight months past opening of the venue. Months 1 -4: Construction Planning During this period, JSFA will complete construction documents and the documents will be put out to bid for a contractor. At the same time, BPATF will be fundraising for the amount needed to cover its $2 Million capital cost investment, a contingency of beginning construction. Also during this phase, BPATF will negotiate and sign an updated lease amendment with the City and plan a groundbreaking event. Institutional marketing will continue, and BPATF will retain a part-time Education Coordinator to create the Education Program. Recruiting Board members will begin. Months 5 -10: One Year prior to opening This phase kicks off with the groundbreaking for construction. As construction commences, BPATF will begin hiring its three full time Director -level staff and the Finance Manager. Staff will be added as they are needed to initiate the programs and systems they will be responsible for. During this phase, institutional marketing continues, planning for the first six months of programming and its accompanying marketing begins, and development of contributed income strategies (including the membership program) takes place. The part-time Education Coordinator will work with the RSSD to develop a test program that can be launched, commencing the summer of 2015. Months 11 -16: Six months prior to opening During the six months prior to opening, construction continues, moving to the interior of the facility. All Director level staff will be engaged during this time, preparing for the opening of the venue. Remaining staff will be recruited and hired during this time. Building systems will be purchased, installed, and tested. Four months prior to opening, the season will be announced, season marketing will roll out and tickets will go on sale. Community events leading up to, and promoting, the opening will take place and an opening event will be planned. Advance planning for the second six months of programming will begin and Board recruitment continues during this phase. SS31 Months 17 -24: Post - opening In the eight months after opening, the theatre will be active with performances, film screenings, and rental activity. Planning for the second season of programming will commence. All Board seats will be filled by the fourth month after opening. This will be an important time for the staff to continue testing systems, policies, and procedures at the new theatre, as actual programming will have begun. It will be a learning phase for the staff to discover best practices for the venue, which can then be instituted during planning for future seasons. Also at this time, the Board will begin a Board Development phase, turning its sights from the construction and opening of the theatre to the ongoing operations of the theatre. Staffing Plan Hiring Process The CEO, Dr. Steven Beazley, is currently the sole paid professional operating BPATF. Beazley will be responsible for the recruitment and hiring of the remaining six full -time and three part -time staff members during the one year prior to opening. The timing for hiring staff members is included in the implementation timeline (see Appendix H). An additional full -time staff member is projected to be hired in Year 3 when BPATF's presenting activity is scheduled to increase. The hiring of this position will be subject to review during the second year of operations post- opening. Full Time Staff- Key Responsibilities The following are the key responsibilities of the full -time BPATF staff positions. During the recruiting process, the key responsibilities will be developed into full job description postings and will include clauses for work to be assigned as needed. As BPATF will have a small core staff with limited administrative support, staff will have inter - departmental responsibilities and cross -over in job duties, with the need for all staff to assist each other on large initiatives and in general day to day administration. SS32 Chief Executive Officer • Leads and works with senior staff as an advocate of BPATF in relation to policy, audience development, community outreach, fundraising, and public relations • Works with the Board of Directors to establish policies and procedures, and to monitor performance against budget • Develops and articulates artistic policy and mission • Defines the budgetary needs for all artistic areas and leads the senior staff in the development and implementation of the annual budget • Recruits, hires, and develops the staff • Develops partnerships with vendors and other local and regional presenters • Collaborates with booking agent to develop the BPATF presenting season. Development and Sponsorships Director • Manages activities related to the analysis, planning, execution, control and evaluation of annual fundraising • Identifies, researches and cultivates prospective donors, coordinates the development of all campaign materials, creates appropriate record - keeping systems for tracking donor contributions and participation, and distributes appropriate acknowledgement materials • Plans and implements funding efforts and advocacy on local, state and federal levels • Prepares and submits grants and related materials and follows through with final report submission • Develops and supervises the membership program and implements membership benefits as appropriate • Sells sponsorships for BPATF programming, including but not limited to individual performance sponsorships, series sponsorships, and season sponsorships. • Works closely with the Board of Directors and the Divas of the Balboa Village Theatre to initiate, identify, and facilitate solicitations of donors and to coordinate fundraising events. Production /Artist Relations Director • Supervises all technical aspects of performances, film screenings, and events at the Balboa Village Theatre • Responsible for backstage safety and the maintenance and responsible use of stage equipment and facilities • Provides key input into artistic programming SS33 • Serve as liaison between BPATF and visiting artists in advance of performances and serve as the main contact for all technical matters • Serves as primary onsite contact for visiting artists • Hires and supervises temporary and part-time stagehands as needed • Provides technical support and information as needed to organizations and individuals that rent the venue • Works closely with the CEO in estimating technical costs before commitments are made for artists and events, and advises senior staff on the need for further capital investment in stage equipment. Marketing Director • Establishes, directs, and implements all marketing and public relations efforts of BPATF, both short and long - range • Prepares, develops, and monitors detailed plans of action for all approved marketing programs, including the budgets that support their implementation • Designs and creates all advertising, promotions and publications, and develops and implements all print and electronic media placement, press releases, department mailings, design, layout, and copywriting for all publications • Monitors ticket sales and implements necessary measures to ensure maximum generation of ticket revenue • Receives all media calls, fulfills requests for photos or information, or directs calls to appropriate staff or consultants • Assists Development and Sponsorships Director in obtaining corporate sponsorships and delivering sponsorship benefits, including acknowledgement in marketing materials, as needed • Delivers marketing services to rental customers when appropriate • Plans and coordinates joint promotions and marketing partnerships with outside organizations • Coordinates ongoing market research and audience analysis. Finance Manager • Maintains records of financial transactions by establishing appropriate accounting systems and prepares financial reports for use by the staff and Board of Directors and as needed for grant purposes • Assures the organization is complying with all accounting - related federal, state, and local legal requirements • Assists the CEO with preparation of the annual budget SS34 • Assists the CEO with processing rental agreements and contracts for visiting artists • Assists the CEO in preparing agendas and reports for Board and Executive Committee meetings • Maintains legal files • Assists the CEO with Human Resources functions as needed. Box Office /Front -of- House /Membership Sales Manager • Supervises all box office and front of house operations and assists with direct ticket sales • Operates and maintains ticketing systems (ticketing software, point of sale technology, kiosks, bar code scanning systems, etc.) • Maintains a high level of customer service and assists with public relations in terms of distributing information and handling customer inquires • Schedules and supervises the box office /customer service staff • Schedules and supervises volunteer front -of -house staff, including ushers, ticket - takers, and hosts; maintains a database of past and current volunteers and their level of participation • Serves as the key point of contact for the concessions vendor and artist merchandise representatives and tracks concessions and merchandise sales for purposes of assessing BPATF's commissions on these sales • Supports the Development and Sponsorships Director in the development, monitoring, and analysis of the membership program • Handles membership program sales and distributes membership benefits as appropriate. Facilities and Maintenance Manager • Establishes, directs, and implements all operations and facility management functions of the Balboa Village Theatre • Develops and implements plans for routine cleaning and maintenance of buildings, grounds, and equipment • Oversees the purchase and inventory maintenance of all maintenance supplies as well as lighting, sound, and office equipment • Oversees setup, strike or changeover of the venue for performances and events, which may include changing the configuration of the stage and seating areas, or setting up tables and chairs • Assists the Production /Artist Relations Director as needed. SS35 Production Assistant /Artist Relations (Begin Year 3) An additional position, Production Assistant /Artist Relations, is anticipated being added in Year 3, at the time that the activity level increases. The increased activity will demand additional onsite direct supervision of the venue when artists, patrons, part-time stagehands, or renters are utilizing the space. This position would support the Production /Artist Relations Director Part Time Staff Two part time box office /customer service representatives are required to support the Box Office and Membership Sales Manager during normal box office hours and prior to events. An education coordinator will be hired on a part-time basis to develop and oversee the Education Program, develop a plan for classes and class curriculums, and act as a liaison with RSSD, which will be a partner in the program. Other part -time personnel, such as stagehands and front of house workers, will be engaged on an as- needed basis. Volunteer Opportunities There will be an array of volunteer opportunities at the Balboa Village Theatre for interested community members. Volunteer positions include: Performance /Film Screening Volunteers Two to four volunteers will be needed for each performance or film screening to serve as hosts, ticket - takers, and ushers. Volunteers are supervised by front of house staff and will receive free admission to the event, as is standard in the industry. Admission may be standing -room if the event is sold out. The Box Office Manager will coordinate and schedule volunteers. Divas of the Balboa Village Theatre BPATF currently has a support guild called the "Divas of the Balboa Village Theatre" whose purpose is to fundraise on behalf of the theatre and assist in presenting events that may increase awareness of the theatre to the community. The divas are expected to raise $100,000 per year which may include the annual gala presented by the theatre along with other special events. Corporate Advisory Committee BPATF will create a corporate advisory committee as an extension of the Board of Directors. This committee will advise BPATF on corporate philanthropy in the area, the corporate membership program, and promote partnerships between the theatre and area businesses. SS36 Governance Recruitment BPATF currently has one board member but will establish a full board of twelve members. BPATF will begin recruiting the first five additional board members in Month 4 of the implementation, just prior to groundbreaking, with a plan to have these members in place by Month 11. This first half of the board will be in place the six months prior to opening, through the initial season announcement and tickets sales, and the venue opening and will provide governance during the pre- opening build -up of activity. The remaining six board members will be recruited during the second half of the implementation. The intent is to have the full twelve member board four months after opening. Board members will each have a $10,000 annual fundraising minimum that can be donated by the individual or raised through other sources. Board Development Beginning in Month 21, five months after opening, the board will complete a board development and visioning process to help create a strategy for successful board operations moving forward. Board development should center around two themes: 1) A shared cohesive board vision for success of the theatre 2) Establishing mutually agreeable policies for board recruitment, committee structure, and member roles post- opening 3) Developing a fundraising strategy for ongoing support of the theatre; this would be developed in conjunction with the Development and Sponsorships Director. SS37 Partnerships During the implementation, BPATF will establish memorandums of understanding or contracts with key partners and vendors. Key partnerships will be in the areas of programming, food and beverage, artist accommodations, and joint marketing, among others. Programming BPATF Presents BPATF will seek partnerships to aid in its season planning process. For live performances, BPTAF will work with a local booking agent to identify and attract the appropriate local and national touring artists and performers. A booking agent will have the industry contacts necessary to secure the best artists and negotiate fees appropriate to the venue. The CEO will work with the booking agent on this process. For film screenings, BPATF is in discussions with NBFF to co- present its film offerings. NBFF will have the knowledge and connections to provide quality film entertainment for the community in conjunction with the new venue. Rental Partnerships BPATF will work closely with its primary two rental clients, NBFF and ExplorOcean, to identify and support their programming needs for the facility. NBFF would utilize the Balboa Village Theatre in April as an additional venue for their popular annual film festival. This would be an expansion of programming and the organization would continue to use other venues in the area, but would be an important activity for the new theatre. ExplorOcean plans to utilize the Balboa Village Theatre for lectures, classes, and events that would be an expansion of its current offerings. Conveniently located across the street from each other, the use would benefit both organizations, providing ExplorOcean with additional spaces for its activities, and providing rental income for BPATF and increased community activity at the theatre. BPATF is also in discussions with other local entities including Newport Elementary School which is explore existing and new school programs that may utilize the theatre space. Education Program BPATF will continue to work with the RSSD to develop the theatre's educational program. It is anticipated that BPATF will provide the curriculum and instructors for this program, while the Department provides advertising and administrative functions such as enrollment, tuition fee collection, and payroll services for instructors in exchange for a percentage of gross revenue. SS38 Food and Beverage BPATF will outsource all of the food and beverage services in the facility to a local vendor, which could include one of the many restaurants or event facilities in the area. The vendor would hold the liquor license for the venue and would manage all concessions activity during performances and film screenings. The vendor would also provide catering services for BPATF meetings and events at the venue. It is still to be determined if the vendor will be the exclusive caterer for rental events. The vendor agreement is yet to be negotiated, but it is anticipated that BPATF will receive a percentage of gross concessions and catering sales that take place in the venue, as is standard in the industry. Artist Accommodations At times BPATF will be responsible for providing overnight accommodations for touring artists that are performing at the venue. In addition, the current venue has limited dressing rooms which may need to be supplemented for larger performing groups occasionally, as required by contract. In this case, BPATF will utilize nearby hotels to provide these accommodations. During the implementation phase, BPATF will negotiate with area hotels for these accommodations, which may include guaranteed minimum dates, discounted rates, joint marketing and sponsorship, or other mutually agreeable terms. Joint Marketing Important joint marketing partnerships will be developed with other performance organizations in the area. These partnerships could include marketing each other's presentations and venues or co- promoting specific events. In addition BPATF will work with other Balboa Village businesses, such as area attractions and restaurants, to promote each other's businesses as well as the Balboa Village as a whole. BPATF will also work with the City of Newport Beach and Visit Newport Beach to promote its events to the community and to visiting tourists. SS39 Principal Challenges Contributed Income The primary challenge BPATF must overcome is a lack of public and donor confidence due to the failure of previous efforts to open the theatre over the past eighteen years. While the cause of this, in part, is due to factors outside the control of current BPATF leadership, the result has been a perception that the project will not be realized. This risk will be mitigated by a clear indication that construction is moving forward, the groundbreaking, and the initial performances, all of which will help to overcome this perception. In addition, a strong fundraising strategy will be important. BPATF will hire a Development and Sponsorships Director within the first five months of the implementation to develop this strategy and work to rebuild community and donor confidence in the project. Programming Mix and Attracting Artists A second challenge is identifying and attracting the right mix of artists and events appropriate for the venue's size and market opportunities. Venues with limited seat counts, such as the Balboa Village Theatre, generally need to charge a higher ticket a AECOM. "Review of Balboa Performing Arts Strategic Business Plan." November 2012. price than larger venues in order to cover artists' fees. BPATF will have to find the right mix of artists, price, and demand to succeed. BPATF has taken steps to mitigate this risk by completing an extensive programming survey of the target market, to understand interest, price sensitivity, and demand. Hiring a booking agent that has experience in the market and good relationships with touring agents is also a strategy to overcome this challenge. Finally, creating a first -class atmosphere for visiting artists and creating a venue they want to play in will help with negotiation of artist fees, as well as cultivating per -show sponsors that can help underwrite the event. Parking The third significant challenge for BAPTF will be parking during summer months, especially on weekends. Previous studies indicate the Balboa Village Theatre could require between 125 and 175 parking spaces for an event,$ plus employee parking for up to ten full and part time staff. Primary parking for the Balboa Village Theatre would be located in a 600 -space beach parking lot two blocks from the theatre. Valet service may be required for some theatre patrons. SS40 Parking challenges can be mitigated through close coordination with City parking authorities. Strategies to consider include the use of valet parking, shuttle or cart service to the nearby beach parking lot, and VIP parking initiatives. In addition, the proposed ExplorOcean development is expected to require an additional 300 parking spaces, though their development proposal calls for the construction of a new parking structure of 450 parking spaces on a City -owned parking lot adjacent to the museum. This parking structure would be a benefit to Balboa Village Theatre patrons if built, due to the location one block from the Balboa Village Theatre. Financial Analysis Capital Funding Lessor Investment The City currently owns the building that will house the Balboa Village Theatre. BPATF has leased the property since 1998. In March 11, 2014, the City conceptually endorsed a resolution (pending this business plan, among other conditions) to rehabilitate the property to tenant -ready status, including structural repairs and upgrades to the building's shell and installing or upgrading building systems to code. These improvements would create a structurally sound space that could be leased or sold in the future, regardless of the occupant or intended activity. JSFA estimates the all -in cost of the renovation will be approximately $2 million. Lessee Investment BPATF would design and fund all interior tenant improvements necessary to operate the structure as a theatre. This includes the interior build -out and all theatrical systems. All systems would be removable, without compromising the building shell, should the facility be used for other purposes in the future. BPATF would also design and fund the exterior marquee. SS41 JSFA estimates the cost of the interior build -out, theatrical systems, and marquee to be approximately $800,000. Balboa Performing Arts Theatre Foundation SCHEDULE FUNDING Estimated Year Needed Contribution Needed City of Newport Beach Lessor Investment Building Shell /Structure 2014 -2015 $2,000,000 Subtotal, Lessor Investment $2,000,000 BPATF Lessee Investment Theatre Systems/Equipment 2014 -2015 $800,000 Pre-opening Operations 2014 -2015 $500,000 3 -Year Operations Support Reserve 2015 -2018 $700,000 Subtotal, Lessee Investment $2,000,000 TOTAL FUNDS $4,000,000 BPATF would be responsible for the cost of operations during the pre- opening phase, projected to be 16 months from the decision to move forward with the project (contingent on the construction schedule which is still to be determined.) Estimated cost of operations during implementation is estimated to be approximately $500,000. A $700,000 reserve fund will also be raised to support the first three years of operations while BPATF increases programming, develops an audience, and builds its membership program. Contingencies Prior to construction, BPATF will raise and have on deposit $2 million in unencumbered cash donations. This requirement will be met before there is any construction or expenditure of City funds. This amount is in addition to the $400,000 BPATF already has on hand to fund current operating expenses. Lease Agreement BPATF is currently negotiating an amendment to the terms of its lease agreement with the City. The proposed amendment would specify a new 50 -year lease with a five -year renewable term clause. In exchange for the City's investment in the building shell, the amendment would specify rent payable by BPATF to the City at the rate of 2.5% of net adjusted gross ticket revenue (NAGR) from BPATF presentations beginning in the second year of operations post- opening. Estimated rent is $22,200 in Year 3, the base year of operations. Implementation Budget BPATF estimates a 16 -month pre- opening phase to allow for the implementation of fundraising, construction, programming, and operations. Estimated operations expenses during the pre - opening phase are approximately $500,000, including a 5% expense contingency. Expenses for this phase include staff salaries and benefits, fundraising and marketing events, institutional marketing, trial educational programming and general administration. SS42 Note that the timeline may be adjusted based on the construction schedule which is yet to be determined. If the construction period is able to be compressed, staffing costs may also be able to be reduced, primarily for staff engaged before twelve months prior to opening, such as the CEO, due to fewer working months in the budget. Balboa Performing Arts Theatre Foundation SUMMARY SCHEDULE 21: OF • • OPERATING COSTS Staff Salaries Months) $406,000 Programming/Events net $20,000 Education Pro rem Test Season net $0 Institutional Marketing $20,000 Other General Administration $30,000 Contingency & Reserve $24,000 TOTAL FUNDS $500,000 Pro forma Operating Estimate Based on the activity profile, research into comparable facilities and experience with similar venues, AMS prepared a pro forma operating estimate that reflects assumptions related to the mission and programming of the venue, which has been modified throughout the planning process. The pro -forma included here was custom - developed to reflect the current plans of the organization, current arts and entertainment facility trends, and normal operational standards for facilities of similar size and scope. (See Appendix I for full operating model). Notes and Assumptions Aside from data - specific assumptions, certain structural assumptions have been made regarding the overall construction of the model: • The forecast refers to facility space descriptions and dimensions as provided by JSFA. • The projection assumes operation of the facility by BPATF, who leases the land and building from the City under the rental terms specified above. • All estimates for facility utilization are based upon primary and secondary research conducted by AMS in 2013 and 2014, during the time of this study, as well as discussions with BPATF leadership. • Revenue and expenses for BPATF's presentations are based on a typology system that examines different season configurations based on the potential scale of its presenting season. • All estimates are in 2014 dollars. The model does not include a provision for an annual expense or revenue escalation. • The model includes an operating expense contingency of +5.0 %. SS43 It should be noted that the projections represent a forecast of the most likely results of operation and are based on current conditions and projected use. This forecast is not a budget and it must be recognized that the utilization estimate is not an exact schedule of activity, given that the building is still in the planning phase. Changes are to be expected and the forecast should be revisited as plans evolve and change. Balboa Performing Arts Theatre Foundation Year Year Year Year Year OPERATING REVENUES $1,264,800 $1,272,100 $1,689,400 $1,690,800 $2,011,300 CONTRIBUTED REVENUES $485,600 $493,700 $502,900 $513,200 $524,900 OPERATING EXPENSES+ CONTINGENCY $1,809,300 $1,811,600 $2,186,800 $2,186,800 $2,510,900 TOTAL RESULT before depreciation $58,900 $45,800 $5,500 $17,200 $25,300 DEPRECIATION (TENENT IMPROVEMENTS) ($20,500) ($20,500) ($20,500) ($20,500) ($20,500) TOTAL RESULT (after depreciation) $79,400 $66,300 $15,000 $3,300 $4,800 Summary Results The third year post - opening is considered the base stable year of operation. Based on the proposed activity model, in Year 3 BPATF will have an operating budget of approximately $2,186,800 (including a 5% contingency), with operating revenues of $1,689,400 and contributed income of $502,900. This yields a net result before depreciation of $5,500 in the base yea r. Revenues from Operation Operating revenue will come from ticket sales, merchandise, concessions and catering commissions, sponsorships, box office and facility fees, facility rental and related charges (e.g., equipment rental, reimbursable staff costs), and educational program tuition. Ticket Sales Attendance projections, ticket prices, and gross ticket sales were projected based on a proposed season of presenting activity as detailed in the Programming section above. Overall average gross revenue and ticket sales are comparable to other venues in California and around the country with similar types of programming. It is assumed there are no sales taxes or amusement taxes on ticket sales, per the State of California and the City's tax codes. Any applicable ticket taxes that may arise would be charged above average ticket prices in the model and passed on to the taxing authority, resulting in a net zero revenue /loss for the organization. In Year 3, gross ticket sales are projected at $887,200. SS44 boa Performing Arts Theatre Foundation ieven!' "ryR Year1 Year2 Year 3 (Base Year) Year4 Year5 $887,200 $1,112,300 $659,100 $659,100 $887,200 $58,100 $58,100 $68,100 $69,500 $75,800 sponsorships $223,000 $223,000 $329,600 $329,600 $362,100 Ticketing and Facility Fees $139400 $139,400 $168,200 $168,200 $196,000 Rental Income $157,000 $157,000 $187,300 $187,300 $216,100 Rental AdditionslChar ebacks $6,700 $6,700 $6,200 $6,200 $6,200 Education Program $21,500 $28,800 $42,800 $42,800 $42,800 TOTAL OPERATING (EARNED) REVENUES $1,264,800 $1,272,100 $1,689,400 $1,690,800 $2,011,300 Ancillary Revenue It is assumed in this model that an outside concessionaire will be contracted to operate concessions and catering in the venue. For the model, it is estimated BPATF will receive a commission of 30% of gross concessions sales and 20% of gross catering sales, though these commissions should and will be negotiated with the vendor. Estimated concessions sales are based on a per capita sale rate per attendee and over the season. Actual per show sales will vary according to the genre of the artists performing and other factors. The estimates are conservative and based upon sales at similar facilities. Concessions commissions would be approximately $41,300 and catering commissions would be $22,100 in Year 3. Merchandise projections are based on BPATF receiving a 20% commission on gross merchandise sales at the venue, with artists or their representatives selling the merchandise. This commission is standard in the industry, though the actual percentage may be negotiated with each artist. Merchandise commissions would be approximately $4,700 in Year 3. An important source of revenue for many venues across the county is a commission on parking fees. This model assumes no parking fee commission; however this would be an important source of revenue if the theatre could come to a mutually agreeable parking agreement with an area vendor or the City. Sponsorship Sales Corporate and individual sponsorships are an important revenue source to help defray the costs of BPATF's presenting activity. In exchange for sponsorship, corporations receive benefits such as recognition, marketing opportunities (signage, recognition on the website, etc.), tickets, and special events. BPATF will be pursuing a very robust sponsorship program. There are three types of sponsorships projected: per show sponsors (who often underwrite artist expenses), annual season sponsors, and corporate membership. Sponsorship projections are based on comparable venues and BPATF's plan to create a corporate advisory committee. Sponsorships are estimated at $329,600 in Year 3. SS45 Ticketing and Facility Fees Patrons would pay a handling fee of $4.00 per transaction for phone and Internet transactions through the box office. This fee is intended to cover the cost of ticketing systems, website ticketing infrastructure, phone service, and handling costs related to these orders. In addition every patron of live performances would be assessed a $4.00 per ticket facility maintenance fee. This fee is earmarked for facility - related overhead, such as annual maintenance and repairs, rent to the City, and equipment repair and replacement. Ticket prices for film would include the facility fee in the price, as the ticket prices are at or below $10 and an additional facility fee would a barrier to purchase at that price level. Renters would be responsible for assessing the facility fee on behalf of BPATF for any subscription, complementary, or individual ticket not sold through the Balboa Village Theatre box office. Such fees are standard in the industry. BPATF would have to pay credit card fee expenses for all credit card purchases made at the box office. The renter would pay credit card fees for rental performances. The model assumes that NBFF sells its own tickets to film festival screenings. Ticketing fees are not included in gross revenue calculations for payments to artists, partners, vendors, or the City making them an important source of revenue to cover BPATF operations. Estimated net ticketing and facility fees would be $168,200 in Year 3. Facility Rental Performance day rental rates cover a 10 -hour period. Rental rates for non - performance uses are for a 4 -hour period. Preferred rates are offered to not - for - profit organizations, as is standard in the industry. Rental rates are based on the comparable facilities that were studied, other venues in the Newport Beach area, and feedback from prospective local user organizations. The model assumes BPATF pays itself rent for its own presentations. This fee is known as a book transfer fee. The rental income is balanced by a comparable presenting expense an a separate schedule, creating a net zero revenue /loss for BPATF. However, the book transfer fee is important for BPATF management when preparing operating budgets and financial statements in order to identify true costs of programming. It is also necessary for calculating accurate shared expenses with presenting partners. Projected rental activity is based on reasonable expectations of use and based on primary research conducted by AVIS. Rental fees from outside organizations would be $64,700 in Year 3. Total rental fees including book transfer fees would be $187,300 in Year 3. SS46 Rental Additions / Chargebacks In addition to rental fees, renters undertaking performances or film screenings would be charged fees for using BPATF labor and equipment in association with their events. Renters would also have the option of using the Balboa Village Theatre box office and would pay an associated fee for that service. For the purposes of the pro- forma, equipment has been bundled into a single category 'Specialized Equipment,' though a la carte options would be recommended once the building design is fully understood and available services and equipment are identified. For event and meeting rentals, the rental fee includes basic event or meeting setup of tables and /or chairs. It is assumed the outside catering /event management company will handle all labor, catering, linens, and additional decor. Projected chargebacks for Year 3 would be $6,200. Education Program Education revenues are calculated as a net contribution and take into account operating costs and staffing of the education program. Assumptions regarding student and instructor fees and duration of classes are based on BAPTF's Education Prospectus. Assumptions regarding class size and number of classes offered reflect experience at comparable venues and the goal of maintaining a reasonable level of activity. It is expected that beginner and intermediate level classes will be held offsite in City facilities, and advanced classes are held onsite in the Balboa Village Theatre. It is also expected that there will be graduation performances or recitals to which tickets are sold. Education revenues assume no facility fees are charged on graduation performance tickets. The estimated net contribution from the Education Program is expected to be $42,800 in Year 3. BPATF staff time and other administrative overhead related to the Education Program is not included in the Education Program's net contribution. Expenses from Operations Operating expenses fall into four main categories: presenting, personnel, administration, and building operations. Presenting Expenses Presenting expenses are based upon budgets and programming of the comparable facilities studied, AMS's research, and touring industry sources. Presenting cost were calculated for each individual presenting typology as noted in the Programming section above, with total presenting expenses calculated based on the proposed season. Presenting expenses for Film /Media presentations are expected to be $20,600 and expenses for live performances are expected to be $1,138,000 in Year 3. In addition, the venue will provide some support for rental activity in the venue; however these SS47 expenses will be recovered from renters in Rental Add itional /Chargeback revenue. Total presenting expenses in Year 3 are $1,164,000. a Performing Arts Theatre Foundation Year 3 Year1 Year2 (Base Year4 Year5 lental "Live Year) $16,000 $16,000 $20,600 $20,600 $20,600 $825,200 $825,200 $1,138,000 $1,138,000 $1,446,600 Rental Activity Support $5,700 $5,700 $5,400 $5,400 $5,400 Sub Total, Presenting Expenses $846,900 $846,900 $1,164,000 $1,164,000 $1,472,600 Personnel Staff Compensation - Full Time $591,500 $591,500 $627,900 $627,900 $627,900 Staff Compensation - Part Time Administrative $28,700 $30,900 $34,800 $34,800 $34,800 Sub Total, Personnel Expenses $620,200 $622400 $662,700 $662,700 $662,700 Administration Professional Fees (CPA, Legal, Website, etc. ) $50,000 $50,000 $50,000 $50,000 $50,000 Office Rental $30,000 $30,000 $30,000 $30,000 $30,000 Office Supplies and Equipment $27,500 $27,500 $27,500 $27,500 $27,500 Professional Development/Recruiting $600 $600 $600 $600 $600 Institutional Marketing $15,000 $15,000 $15,000 $15,000 $15,000 FundmisinglDevelop ment $67,000 $67,000 $67,000 $67,000 $67,000 Sub Total, Administration 1 $190,100 1 $190,100 1 $190,100 1 $190,100 1 $190,100 Staffing Expense At the proposed level of activity, it is estimated that seven full - time and three part -time employees will be needed to operate the organization and manage the facility, with an additional full - time staff member being added in Year 3. For the purposes of projecting staff compensation estimates, combined benefits and payroll taxes have been estimated at an average 30% of full time salaries and 8% of part time salaries. Projected staffing costs, including benefits, are estimated to be $662,700 in Year 3. Stagehands and additional front of house workers will be hired as needed on a per -show basis. The costs for additional performance based staff are included in presenting expenses. Building Operations Occupancy costs include security, utilities, cleaning and maintenance, and non - capital maintenance and repairs. Occupancy costs are based on comparative facilities studied and AMS's experience with similar facility operations and are calculated on a cost per square footage basis, with the exception of insurance, for which estimates were sought from insurance companies familiar with the area. The model assumes the City carries insurance coverage for the shell portion of the building, as it is a City asset. Estimated building operations expense in Year 3 is estimated to be $65,900. CyCY( 3 Contingency As with any facility renovation, there will be some expenses which are unforeseeable several years out into the future. Therefore, AMS has included a 5% expense contingency in the operating model, which equals $104,100 in the base year, to account for these eventualities. Balboa Performing Arts Theatre Foundation Year Year Year (Base Year Year Year) Buildin 0 erations Utilities (Gas, Electric, Water, Sewer $10,800 $10,800 $10,800 $10,800 $10,800 Insurance $30,100 $30,100 $30,100 $30,100 $30,100 security $2,700 $2,700 $2,700 $2,700 $2,700 Cleaning & Maintenance $4,100 $4,100 $4,100 $4,100 $4,100 Annual Maintenance & Repairs $18,200 $18,200 $18,200 $18,200 $18,200 Sub - Total, Building Operations $65,900 $65,900 $65,900 $65,900 $65,900 Subtotal, Operations Expenses $1,714,200 1 $1,716,400 1 $2,069,700 1 $2,069,700 1 $2,374,500 Expense Contingency $86,200 $86,300 $104,100 $104,100 $119,600 TOTAL OPERATING EXPENSES wl Contingency before depreciation $1,809,300 $1,811,600 $2,186,800 $2,186,800 $2,510,900 Depreciation $20,500 $20,500 $20,500 $20,500 $20,500 TOTAL EXPENSES wl Contingency & Depreciation $1829800 $1,832,100 $2,207,300 $2,207,300 $2531400 Contributed Revenue The difference between operating revenue and expenses will be made up in contributed revenue. BPATF will be pursuing a very robust membership program, as well as seeking contributed revenue from individuals and private sector grants and contributions. Additional contributed income will come from special fundraising events. Membership BPATF will create a membership program tied to its concert and film programming. Membership projections for Year 5 are based on comparable venues. The membership program is anticipated to grow over the first five years to reach Year 5 levels. Projected membership income is estimated at $82,900 in Year 3 and grows to $104,900 in Year 5. Private Sector Grants and Contributions The Board of Directors will be responsible for $120,000 of contributions annually. Required board donations are based on an anticipated twelve board members with a requirement to contribute, or bring in from other sources, $10,000 per year each. Excess board donations above each individual's annual amount would be considered individual gifts. BPATF will also pursue $40,000 in Education Program support, intended to cover the wages for the Education Coordinator and associated overhead. It will be sought from a granting source or corporate donor. SS49 In addition, the organization will pursue additional individual, corporate, and foundation gifts and grants for annual operating support. It is estimated that, combined with the Board giving and Education Program support, BPATF will pursue approximately $320,000 in Private Sector Grants and Contributions in Year 3. Special Events Special events assumptions are based on past Divas of the Balboa Village Theatre galas and other special events, as well as fundraising events at comparable venues. Special event revenue is shown net of event expenses, and is expected to be approximately $100,000 in Year 3. Balboa Performing Arts Theatre Foundation Year1 Year Year 3 (Base Year) Year4 Years r Support & Funding Memberships $65,600 $73,700 $82,900 $93,200 $104,900 Private Sector - Grants and Contributions $320,000 $320,000 $320,000 $320,000 $320,000 Special Events $100,000 $100,000 $100,000 $100,000 $100,000 Government - Grants and Contributions $0 $0 $0 $0 $0 Endowment $0 $0 $0 $0 $0 TOTAL CONTRIBUTED UNEARNED REVENUES 1 $485,600 1 $493,700 1 $502,900 1 $513,200 1 $524,900 Other Revenue Sources BPATF is contemplating other revenue sources which are unconfirmed at the time of the study and therefore not included in the financial model. The revenue sources include possible government support from the City Cultural Benefit District, currently only available for capital expenditures, and the proposed City Parking District. BPATF will also pursue other federal and state government grants, which are not forecasted here. In addition, parking revenues are frequently used as a revenue stream for not - for - profit performance venues. BPTAF may create a mutually beneficial partnership with off -site parking lots that will benefit from the venue's patrons. SS50 Conclusion The information provided in this plan and the recommendations articulated are intended as a guide to support planning for programming and operation of the Balboa Village Theatre. It is a guide with a goal of helping BPATF achieve success. With dedication, focused leadership, and the necessary resources, BPATF will develop a successful venue that can serve the community, help revitalize downtown, and be a source of civic pride well into the future. Appendices Appendix A: Venue Design Appendix B: Stakeholder Interviews Appendix C: Comparable Facilities Case Studies Appendix D: Potential Audience Survey Report Appendix E: Market Area Characteristics and Lifestyle Analysis Appendix F: Primary Market Area Survey Report Appendix G: Competitive Inventory Appendix H: Implementation Timeline Appendix I: Pro Forma Operating Model SS51 Appendix A: Venue Design Design Features The design for the renovated Balboa Village Theatre has been completed by John S. Fisher and Associates and includes the following features: • Restored front fagade • Front lobby and restrooms for patrons • Performance /film venue with flexible seating for 300 people for performances and approximately 125 people for seated banquets or other activities needing aflat floor space. • Backstage green room area and restrooms for performers • Seismic upgrades and infrastructure enhancements required to meet current building codes Section and Floor Plans Section and floor plans for two seating configurations follow. Balboa Performing Arts Theatre Foundation Page A -1 April 2014 Balboa Village Theatre Business Implementation Plan © 2014 AM$ Planning & Research Corp I m�anm m¢�aolr I eoae � ®aa yymo � Ivll Ir� —� 8 mxom[tmeR NR/R �� 6Si R � mml mo '^ I mwv[ w f w myama 6es 1p i Ow OO ® I u[ �I wee Syr a uua, a � >m am cyF. mm Im - --�,.- I�� - -- • • o � ymlmnnasa�lmmrue L ��, d Y1F1 EIIN LA ILR mm6NWN JSia o[m.6S` mm• m.rtaw u W Y� mml T p®p® L >w bLOG mt I do I I RA 6W[ 01Q � wea.a xnexux xaa �: ovr � SITE PLAN x° µ101ACpe-'�"' m: mwu o.+vw A001 11I iF9� ®gs a a {ilil j4 �iA68ie5 ��"� De d €?5 @�d ----------- I 6 q i a a O--- _ ---------- — ---------------- 00 J LL J LL O LL U W I 1 I I I � I 1 1 I 1 I 1 1 1 _ r 1 1 J T u •pp Z4 5E Zq 5`s a a O 44 o l y J i) I ;rf •, f i (1. ROOF PLAN SECOND FLOOR PLAN. =�^ m jsfe 3 CATWALK FLOOR PLAN M FLOOR PLAN �_ A003 i 3 CATWALK FLOOR PLAN M FLOOR PLAN �_ A003 /1 TRAVERSE SECTION Y f'.7t P! XYY i 9 i N 17_ \ awe] - ] = Y i n CENTER LINE SECTION END STAGE 4 SIDE ELEVATION SIDE ELEVATION 2 BACK ELEVATION FRONT ELEVATION jsfa E..:y.d •et >. SE<TON96EtEV.ipA9 4P116t Wl a,r. amxaaEUr xn. ^^ A004 - - - - -- W107 ------ ------------ - - - - -- im Ir: -�I /1 TRAVERSE SECTION Y f'.7t P! XYY i 9 i N 17_ \ awe] - ] = Y i n CENTER LINE SECTION END STAGE 4 SIDE ELEVATION SIDE ELEVATION 2 BACK ELEVATION FRONT ELEVATION jsfa E..:y.d •et >. SE<TON96EtEV.ipA9 4P116t Wl a,r. amxaaEUr xn. ^^ A004 Aovendix B: Stakeholder Interviews Balboa Village Theatre Leadership Interviews In July 2013, AMS conducted a series of Stakeholder Interviews with 22 key members of the community to solicit input and ideas related to the Balboa Village Theatre renovation., • Interviews Were held individually and occasionally in small groups • Interviews were conducted primarily in person, with a limited amount done by phone • Interviews lasted approximately 30 -45 minutes Interviews were guided by the following protocol containing questions designed to solicit feedback related to: • Vision for the organization • Current entertainment options in Newport Beach • Community support • Potential challenges .p Potential activity and_ users • Financial support • Definition of success In- person or phone Interviews were conducted with the following: o Former Balboa.Theater Board of Directors • Todd Pennington, Chair • Craig Smith, Treasurer /CFO and Secretary ' • Janet Ray, Vice Chair of Development • Judith Posnikoff, Vice Chair of Governance • Jo King; Historian • Kay Mortenson, Capital Campaign /Community Relations • Seth Siegel, Former Chair • Marian Bergeson, Governmental. Relations Community Leadership • Ralph Rodheim; Rodheim Marketing Group • Michael Henn, Newport Beach City Council • Laura Detweiler, Recreation and Senior Services, Director, City of Newport Beach • Richard Stein; Executive Director, ArtsOC • Tom Pollack, CEO, ExplorOcean • Curt Abdouch, Center for Educational Partnerships, uC Irvine • John Forsyte, President, Pacific Symphony • Lynn Holly Givens • Robert Smith, Newport Beach Arts Commission • Cynthia Cowell, Library Services Director, Newport Beach Public Library Project Research In addition, the following individuals were interviewed as part of the research conducted for the study: • John Fisher; Architect, John Sergio Fisher & Associates • Douglas Rankin, President, Irvine Barclay Theatre • Brian Dobbin, Brian Dobbin, Inc. • Ruby Gualberto, Vice President of Marketing Development, Visit Newport Beach Balboa Performing Arts Theatre Foundation Page 8 =1 April 2014 Balboa Village Theatre Business Implementation Plan © 2014 AMS Planning & Research Corp. Ai3nendix Co Comparable ]Facilities Case Studies Comparable Facilities Research Early in the study, AMS prepared the following four cases studies on comparable facilities in order that BPATF may learn from their experiences and to provide benchmark information for the operating model. The criteria for choosing the facilities were: • Community size, demographics • Proximity to large metropolitan area • Coastal towns, second home, or vacation areas • Not - for - profit operated with a presenting model • Facility with a single venue;. 200 -500 seats • Programming including concerts, special events, and film • Educational program • Available for event rentals Comparable Facilities The facilities chosen for study were; • Westhampton Beach Performing Arts Center; Southampton, NY • Fairfield Theatre Company; Fairfield, CT • ,Lyric Theater; Stuart, FL • Napa Valley Opera House; Napa, CA Balboa Performing Arts Theatre Foundation Balboa Village Theatre Business Implementation Plan Key Learnings The key takeaways from the following case studies for BPATF are: Key Challenges • Having debt, which was a burden to all four organizations and prevented growth; Two have now paid off their debt • Attracting high - caliber artists to small or out -of -the way venues Understanding the right programming mix for the community Kevsto Success o Paying off all debt and having a reserve fund -.o. High quality technical systems o Experience with or connections to agents and artists o Investing: in marketing o Providing an exceptional, quality experience for artists and patrons Highlighting the intimacy of the venue Additional Research Alongside the formal case study facilities, AMS completed additional research on other venues in California and across the nation to further understand concert programming, sponsorship, membership, and staffing models. This information was also incorporated into the operating model. Page C -1 April 2014 2014 AIVIS Planning & Research Corp I. MIVA "I For the Arts and Entertainment Industries Balboa Performing Arts Theatre Foundation Comparable Facilities Case Studies August 2013 0 2013 AMS Planning & Research Corp. Westhampton Beach Village Performing Arts Center Westhampton Beach Village (Town of Southampton), NY FACTS IN BRIEFS Facilities 425 -seat theater Operating Structure Owned and operated by the Westhampton Beach Village Performing Arts Center, Inc., a 501(c)3 organization Staff 11 full -time; 6 -10 part-time per event FY 2010/11 Revenues $3,517,372 FY 2010 /11 Expenses $3,134,566 Earned Revenue 75% of operating expenses Programming Concerts, theater, film, extensive educational program MISSION The Westhampton Beach Performing Arts Center is a year - round, community- based, not-for-profit 501(c)3 arts organization, founded in 1997, that serves patrons on the East End and across the globe. The Center is a vibrant venue committed to providing a greater understanding and appreciation of the arts and meeting the cultural aspiration of the area by: • Presenting world -class performing arts, music, dance, comedy and cinema from around the world. • Providing premier arts education programs to the widest and most diverse audiences, regardless of socio- economic status. • Acting as a catalyst to enhance the local economy, while enriching the community's quality of life. FACILITY The Westhampton Beach Performing Arts Center (WHBPAC) facility includes: Theater • Capacity: 425 seats (294 at orchestra level and 131 in the balcony) ' Information for this case study was obtained from the Westhampton Beach Performing Arts Center website, www.whbpac.org, accessed July 2013, the Westhampton Beach Performing Arts Center 2011 IRS Form 990, and an Interview with Clare Blscglia, Executive Director In July 2013, unless otherwise noted. 0 2013 AMS Planning & Research C o r p . - 2 - August 2013 • Proscenium venue • 29'x25'10" stage with 18' of wing space • Marley dance floor available • State of the art sound and light systems Gallery Lounge • Used as bar and concession area prior to performances • Visual art exhibits There is ample car and tour bus parking for patrons in the village. OPERATING STRUCTURE WH.BP.AC is a 501(c)3'charitable organization governed by a 21- member board of directors. The center also has eight honorary board members; a 21- member advisory council, and a24- member arts education advisory council. Clare. Bisceglia „the current Executive /Artistic Director; has been with the organization for eleven years. Her previous background was in marketing and management at companies including Coca -Cola; Columbia Pictures, and the Tennessee Repertory Theatre. There are eleven full -time staff positions: • Executive Director • Director of Arts Education/ Associate Director • Finance Director • Manager of PR & Artist Relations • Managing Director of Arts Education • Operations & Development Associate • Director of Sales and Volunteer Services • Box Office Sales • Director of Production & Facilities • Facilities Manager • House Manager Additional part-time staff is hired on a pet show basis and averagessix'to'ten people per'performance, depending load -in and load -out needs of the artist. The center employs eighteen on- season and six off - season teaching artists. All teaching artists are on at- will contracts. There is a core group of 100 volunteers that assist in several areas, including ticket taking, ushering, concessions and merchandise sales, and mailings. Volunteers receive benefits including one pair of complementary concert tickets and movie passes based on the number of hours volunteered, as well as an invitation to the annual volunteer party. BACKGROUND The facility, originally called Prudential's Westhampton Theater, opened in 1932 as a movie theater. It was later purchased by United Artists and operated as the United -Artist Theater until the 1990s, when it was no longer financially viable. To save the theater,'which was in serious disrepair, from demolition, a group of village residents and business owners formed the Westhampton Beach Performing Arts Center O 2013 AMS Planning & Research Corp. -3- August 2013 organization in 1996. With support from individual and foundation donations, the not - for - profit company purchased the theater from United Artists for $300,000 in May of 1997'. The $2.8 million renovation began immediately, including adding a new stage, orchestra pit, and seating areas and completing technical upgrades. The theater reopened in July of 1998. Approximately 60% of the renovation costs were covered by donations from residents and local business owners, and the board borrowed $1:8 million from North Fork Bank when the theater opened for the remaining costsl and start-up operations. The center had three executive directors in its first four years of operations. The fourth,. Clare Bisceglia, was hired in 2002 and has been with the organization for eleven years. This past May, she announced .she would be retiring from the theater. Asearch for a new Executive. Director is currently in process. The organization has become a year -round entertainment destination and a leading provider of arts education for the County. Since 1992; it has increased its budget from $1.8 million to $3.1 million. The interest - bearing loan was intentionally paid off early, in June 2005, due to support from the Hamptons community. The residential property next door to the venue has been purchased and renovated into classrooms for extended children's programming., The venue received a $300,000 refurbishment in 2013 for its fifteenth anniversary. The focus was primarily on fixing wear and tear on the building. Updates included new carpeting, new paint,.and'a new stage surface. COMMUNITY Westhampton Beach Village is an incorporated village in theTown of Southampton; NY. The:town is located on the Atlantic Ocean on the southern edge of Long Island, 91 miles from New York City. The town is a popular seasonal resort area, drawing thousands of visitors and seasonal residents who almost double the population each summer. Demographics: Community 2011 Population Land Area Density Town of Southampton; NY' 55,210 140 miZ 394 people /al Suffolk County, NY' 1,493,350 '912 m_ i' 1,637 people /mi' Metro Statistical Area 2010 Population Land Area Density New York Tri -State Area 19,567,410 11,842 mil 1,652 people /miZ As of 2010, Suffolk County residents were 85.8% white, 8.2% Black or African American, and 3.7% Asian. .32.4% were of Hispanic ethnicity (any race). 62.4% of the County's population was between 18 and 65,years of age and 32.4% of residents had a college education. The median household income was $87,187. The median home value was $411,000 and the homeownership rate was 80.8 %:s Town of Southampton. "Demographics..." Accessed August 2013. http i / /www.southamptontownny.gov /content /4291 /default.aspx ' U.S.. Census Bureau QuickFacts. "Suffolk County, New York." Accessed August 2013. http: / /gU[ckfacLs. census .gov /qfd /states /36/36103.htmi `U.S. Census Bureau. 2010 Census Population and Housing Tables; http: / /www. census .gov /populatlon /www /cen2010 /cph -t /cph- t- S.htmi ' U.S. Census Bureau QuickFacts. "]Suffolk County; New York." Accessed August 2013. htip: / /quickfacts.census.gov /qfd /states /36 /36103.htmi 0 2013 AMS Planning & Research Corp. -4- August 2013 REVENUE /EXPENSE: FY 2010/11 The 2010/11 fiscal year, the most recent year for which public information is available, resulted in revenue of $3,517,372 and expenses of $3,134,566, generating a net gain of $382,806.33.5% of revenue was contributed. The previous fiscal year had resulted in a net loss of $6,385. Revenue Contributions, Gifts, Grants Fundraising Events $172,755 Government Grants $43,167 Other Contributions, Gifts, Grants $962,319 Program Service Revenue Program Income $2,291,087 Investment Income $16,547 Other Revenue Net Gain From Sale of Assets $505 Fundraising Events $30,992 TOTAL REVENUES $3,517,372 Expenses Compensation, Salaries, and Wages $834,698 Benefits $66,576 Payroll Taxes $65,097 Fees for Services Accounting $9,500 Other $6,655 Advertising and Promotion $143,497 Office Expenses $87,818 Occupancy $72,832 Depreciation and Amortization $144,468 Insurance $55,411 Musicians and Performer Fees $1,210,849 Production Costs $183,861 Credit Card Fees $52,472 Repairs and Maintenance $49,578 Other Expenses $151,254 TOTAL EXPENSES $3,134,566 Revenue less Expenses $382,806 Total Assets 1 $6,249,162 Total Liabilities $294,044 At the end of the 2010/11 fiscal year, liabilities included approximately $90,000 in accounts payable and $203,000 In deferred revenue. WHBPAC no longer has any capital debt. It has a $1 million endowment and a $3.5 million cash reserve. © 2013 AMS Planning & Research Corp. - 5 - August 2013 Ticket sales on IV cover 50% of WHBPAC operating costs and the center alms to raise over $1.5 million in contributed income each year. Special fundraising events include an annual gala and a golf outing. The center receives some government support from the Town of Southampton, Suffolk County; and The New York State Council on the Arts (NYSCA) in the form of grants. All grants are applied for on a per project basis. The center does not receive a subsidy. MEMBERSHIP AND SPONSORSHIPS' WHBPAC has a Film Society membership program., Memberships are $60 and include 20, discounted film admissions per calendar year, free admittance-on the member's birthday; and an' invitation to two annual pre -film receptions exclusive to Film Society Members. The center does.not have a traditional membership program for donors. Instead, development programs for individuals are focused on dedicating stones on WHBPACs walk of fame, dedicating auditorium seats, and providing recurring gifts. Show sponsorships begin at 50% of the artist performance fee and include recognition in all show marketing materials. Corporate sponsorships are available' and designed on a per company basis. They have marketing benefits for the company. PROGRAMMING WHBPAC offers year - round, diverse cultural programming, including concerts, theatre, dance, and film,. The Executive Director"is primarily responsible for the programming. Concerts and Performances • Every Saturday and Sunday night, some Thursday and Friday nights • World renowned artists • Examples: Emmylou Harris, Tom Cotter, Alan Bergman, Buddy Guy, Natalie Cole, John Hiatt, Huey Lewis and the News, Tommy Tune, Pilobolus, Vince Gill, Lewis Black, Brett Dennen, Michael Bolton, Bruce Hornsby, Wanda Sykes, Garrison Keillor • Tickets range from $25 -150 depending on;the event; tickets average $75 -95 for popular artists • WHBPAC deals directly With the agencies to book artists; they do not work with local promoters Family Programming • Most Friday nights • Children's theater and other family friendly acts • Examples: Pinocchio, The Wizard of Oz Ballet • Tickets are $15 -25 Film • Every Monday- Wednesday (some Thursdays) at 8pm • One movie featured each week • Weekly "Movie Nights with Andrew' movie discussions with a local University professor • Features current release art house, foreign, independent; and documentary films • Examples:. Augustine, Fill the Void, You Ain tSeen Nothin' Yet, 20 Feetfrom Stardom, Much Ado About Nothing, Museum Hours • WHBPAC works directly with film distributors to contract movies forscreening O 2013.AMS Planning & Research Corp. -6- August 2013 SEASONALITY Westhampton Beach is a seasonal community, with summer months being the "on-season." WHBPAC's programming.does not materialiy change in structure in the off - season. The. primary difference is that winter programming includes artists with less expensive fees, allowing for more judicious ticket pricing. In summer there may be several concerts with above $200 ticket prices, but none in winter as the permanent resident community has less disposable income.than,the summer residents and tourists. EDUCATION W HBPAC. has an extensive educational program overseen by a full -time Director of Arts Education. The Arts Education Programs serve over 15,000 children; adolescents; and older adults each year. Educational programs are partially supported With public funds from the New York State Council on the Arts and rSponsored by The Town of Southampton and several foundations and individuals. Programs include: School Day Performances • Two performances per day; three to four days per month during school months • Open to school groups and the public • Examples: Baobab, Slam Poetry", Dream Carver, Buffdlo Soldier Family Friendly Performances (see Programming Section) • High quality performances offered on- Friday evenings or weekends Classes • After - school classes, weekend workshops, skill -based master classes for children and teens • Taught by professional theatre, music; and dance teaching artists • Scholarships are offered for those'in need Camps • Offered in July and August and over school vacation breaks • Seven camps offered in 2013 with an average tuition cost of $340 -$400 • Week -long arts camps that focus on "development of life- skills • Offerings include Musical Theatre, Shakespeare, Ballet, Composing, Broadway, Puppetry, and play- writing Teen Scene Teen Theater Troupe (summer) • Seven weeks; three night per week • Classes in acting, voice, and movement • Rehearsal for a full- length play, which is performed at the end of the session • The program fee is $700 Teen Theatre Project (winter) o Production of a full - length play or musical Classes in scene study and auditioning 0 2013 AMS Planning & Research Corp. -7'- August 2013 Life -long Learning Creative Aging programs designed for adults ages 60 and over Taught by professional teaching artists Participants weave together music, theatre,•story4elling" and reminiscence to create community performances that are produced on the WHBPAC stage EVENT RENTALS, The "theater is available for rent for public performances and private events. Due to its own heavy programming schedule, WHBPAC does not focus on rental activity and the few rental events onlytake place in the winter, off- season. Rental events are usually private, as the. organization likes to keep control over the type and quality of public performances offered. Fees vary based on the type of event, the spaces, and the support staff needed. BOX OFFICE All tickets are sold through the WHBPAC box office, which is open Monday through Sunday 12p -8p in July and August and Wednesday through Sunday 12p -6p in fall and winter. The venue charges a $5 .surcharge fee for phone transactions and online sales. CONCESSIONS WHBPAC has a liquor license and operates a bar and lounge, which are open 45 minutes prior to show time. Water, soft drinks, beer, and wine are available, but no hard alcohol. Food is not available. Beverages are not allowed in the theater itself. CATERING Catering for artists is provided by high caliber local vendors. Catering for rental events is contracted by the renter. The rental fee is increased if there is catering at the event and the caterer must be licensed, KEYS TO SUCCESS According to Bisceglia, the biggest challenges at the beginning were the original debt ($900,000 when she arrived), the fact that the;venue was unknown to agents, and the lack of infrastructure for communication, marketing, or volunteers.. Her key to success was never apologizing far the intimacy of the theater (she states "its smallness will be its greatness "). The organization worked from the ground up to establish a reputation with agents, build the marketing department, and pay off the debt early. Getting out under the debt was a priority goal. They couldn't grow until that was accomplished. Bisceglia places a great emphasis on quality. The venue has state -of the art sound, lights; acoustics, film projectors, and backstage areas. She shares "because you are small you have to be 150% perfect with everything." The staff pays great attention to detail, including first -class treatment for performers, in order to build a reputation as avenue Where artists want to play. It can be expensive, but they cater to the artists and "kill them with kindness" so they want to tome play there. Another key is the venue's location, which is roan area where people are willing to pay a premium to see headline artists in an intimate venue. O 2013 AMS Planning & Research Corp. -,8 - August2013 Lyric Theatre Stuart, FL FACTS IN BRIEF" Facilities 500 -seat theater Operating Structure Owned and operated by the Friends of the Lyric 501(c)3 Staff 10 full -time; 20 -25 part-time FY 2010/11 Revenues $2,203,746 FY 2010/11 Expenses $2,457,429 Earned Revenue 67% of operating expenses Programming Concerts and events, film, education program, rentals MISSION To provide the community with a home for the performing arts that entertains, educates, and stimulates the growth of artistic integrity and experience for everyone. FACILITY The Lyric Theatre facility includes: Main Theater a 500 seats (266 orchestra level, 150 lower balcony, 74 balcony, 10 box) a Proscenium venue a 22'x30' stage with 11' of wing space a 4 dressing rooms The Lyric also manages the following City -owned building: Lyric Flaaler Center a Former recreation center; repurposed and re- opened in 2011 a 5,602 sq ft a Contains two studio theaters and a lounge, which can also be used for rental events a The Lyric manages the building under a 10 -year agreement .Information for this case study was obtained from the Lyric Theatre website, www.hrrictheatre.org accessed July 2013, the Friends of the Lyric Theatre 2011 IRS Form 990, and the article Rangel, Isadore. "Stuart's Lyric Theatre sets $3 Million Fundraising Goal to Payoff Debt.- TCPalm. 21 December 2012. http -./ /www.tcpalm.mm/ news / 2012 /dec /21/stuarts- Ndc-theatre- sets -3- million- fundraisingt?print =l, unless otherwise noted. O 2013 AMS Planning & Research Corp. - 9 - August 2013 • All rental and ticket costs go toward expenses incurred for managing the center • If there is a profit, the Lyric contributes $2 from every ticket sale to the City' OPERATING STRUCTURE The Lyric is owned and operated by Friends of the Lyric, LLC, a 501(c)3 organization. It is governed by 17- member board of directors. The Executive Director is John Loesser,'Who has been with the organization since 1999. His, previous background was in theater producing; record producing, and running small civic theaters in Orlando, FL and Peekskill, NY. The: Lyric's full -time staff positions are: Executive Director Assistant Executive Director Director of Membership and Audience Services Education Operations Director e Development Director Production Manager and Show Advance Art Director Controller c Accounting 0 Magazine Advertising Sales Approximately 20 to 25 part-time staff members are employed as needed based on programming. BACKGROUND The Lyric Theatre first opened in March 1926 as a silent movie house. It was closed and sold during the depression and changed hands numerous times over the following 50 years. In 1978, the theater was purchased by a local church and used for weekly services until 1987, when. it built anew facility. In that year, a group of individuals recognized the opportunity to save the historic structure as part of a downtown redevelopment effort and at the same time provide a needed location for community presentations. The Friends of the Lyric bought the facility from the church in 1988. In 1993, the venue was listed on the National Register of Historic Places. From 1993 to 1995 it underwent extensive repairs, including marquee improvements, exterior painting, new roofing and A/C systems, ADA compliance, creation of a new box,office; and remodeling of restrooms and dressing rooms,. The facility continued to be improved and future years saw new seating and the addition of an administrative office in 1996, upgrades to the balcony, anew elevator, and refurbished restrooms in 2001, and lighting and sound upgrades in 2002. The vacant lot behind the theater was purchased in 1999 and in 2004/05 the Lyric completed a $1.5 million expansion, which included enlarging the stage, structural repairs, new air conditioning; remodeled and improved backstage and dressing room areas, new restrooms, and additional office space. In December 2012, the theater launched a new three -year, $3 million fundraising, campaign. The donations will help the not- for - profit theater payoff $650,000 in mortgage debt remaining on building., ' Erazo, Chri @tin. "New Lyric Flagler Center Fills Void In Stuart's Arlisitc COrnmunlh .. 25•February 2011. http://w w..tcpalm.com /netys /2011/leb/25 /new- Iydc- gaglef- center - fills- void -In- Stuarts /' O 2013 AMS Planning & Research Corp. _10- August 2013 About $1 million will go toward revamping the theater's lobby and entrances, as well as replacing seating, painting the auditorium, and installing new lighting, The remaining funds are intended for a reserve fund that will allow expansion of its educational programs and more flexibility in retaining higher caliber artists. COMMUNITY Stuart, FL is part of Florida's Treasure Coast, located 46 miles north of Palm Beach and 107 miles from Miami. It draws people for its fishing and skyscraper -free ocean views and is known for its waterfront, boutiques, and restaurants. It is a quiet beach community that draws people who are not as interested in the party atmosphere further south. There is not much of a cultural scene, aside from the Lyric, and it is a prominent feature in tourism advertising for the City. Demographics: Community" 2010 Population Land Area Density Stuart, FL 15,594 6 mil 2,344 people /mil Martin County, FL 146,318 543 mil 269 people /mil Nearest Large Metropolitan Area9 2010 Population Land Area Density Miami -Fort Lauderdale - Pompano Beach 5,596,237 6,137 mil 912 people /mil As of 2010, Martin County residents were 90.6% white, 5.8% Black or African American, and 1.2% Asian. 12.7% were of Hispanic ethnicity (any race). 59.4% of the County's population was between 18 and 65 years of age and 29.9% of residents had a college education. The median household income was $53,612. The median home value was $238,200 and the homeownership rate was 78.8 %.10 REVENUE /EXPENSE: FY 2010/11 The 2010/11 fiscal year, the most recent year for which public Information is available, resulted in revenue of $2,203,746 and expenses of $2,457,429, generating a net loss of $253,683. 24.7% of revenue was contributed. The previous fiscal year had resulted in a net loss of $97,294. Revenue Contributions, Gifts, Grants $545,408 Program Service Revenue Productions, shows $1,405,065 Theater Rentals $158,683 Concessions $94,207 Investment Income $383 TOTAL REVENUES $2,203,746 ' US Census Bureau QulckFacts. "Martin County, Florida "Accessed August 2013. h tip: / /quickfam.census.gov /qfd /states /12/12065.htmi "U.S. Census Bureau. 2010 Census Population and Housing Tables: h"p://www.census.gov/population/www/cenZO10/cph-Vcph-t-S.html j0 U.S. Census Bureau QuickFacts. - Martin County, Florida." Accessed August 2013. httP:HqulWacts. census .gov /qfd /swes/12112085.html 0 2013 AMS Planning & Research Corp. - 11 - August 2013 Expenses Compensation, Benefits $594,728 Payroll Taxes $47,693 Advertising and Promotion $213,459 Occupancy $90,091 Travel $75 Interest $48,112 Depreciation and Amortization $86,241 Show and Film Expense $1,072,703 Insurance $106,862 Box Office Expense $45,241 Cost of Concessions $35,229 Professional Fees $30,942 Other Expenses $86,053 TOTAL EXPENSES $2,457,429 Revenue less Expenses ($253,683) Total Assets $2,480,111 Total Liabilities $1,551,615 At the end of the 2010 /11fiscaI year, liabilities included approximately $0.2 million in accounts payable, $0.8 million in secured mortgages and notes payable and $535,000 in deferred revenue. The Lyric receives no government support or any support from state or national organizations that support the arts. Ticket sales only cover 57% of operating expenses. MEMBERSHIP AND SPONSORSHIPS The Lyric offers six levels of membership ranging from $35 to $2,500. Benefits of membership increase for each higher tier. Benefits include the ability to purchase tickets in advance, discounts at local restaurants and shops, private receptions, exclusive events, and concierge service. PROGRAMMING The Lyric serves over 60,000 patrons a year at its events. Events range from classical theatre to rock and country bands, orchestra and jazz concerts, dance recitals and school programs, as well as movies. The Executive Director is primarily responsible for programming. Concerts and Events: • October through April; Thursday through Sunday nights • Approximately 50 headliners per year • A wide cross - section of musicians, comedians, tribute bands, musicals, and dance companies • Examples: Blood, Sweat & Tears, Crossbone, Kris Kristofferson, Big Bad Voodoo Daddy, Grayson Hugh, Nestor Torres, Boyz 11 Men, Burt Reynolds, Esperanza Spalding, Craig Ferguson • Ticket prices range from $20 -85 • Specialized Series: o Ovation Concert Series January through March, Saturday nights © 2013 AMS Planning & Research Corp. _12- August 2013 Five show series Classical, chamber, acoustic, dance o Nostalgia Series December through March Examples: Big Bond, New York Tenors Christmas, Glen Miller Orchestra, Earl Turne-es Box of 45s, Clint Holmes a Broadway at the Lyric • January through March Fourshow series, three performances each Examples: Hair, Forbidden Hollywood, Sweet Charity, Best of Broadway Non -LVric Presentations: o Dances, benefits, concerts presented by others who rent the theater Film: o Summer of Free Movies: • Saturday nights and Sunday matinees in August • Double feature of two classic movies each week, • Examples: Harald & Maude, Mr. Smith Goes to Washington, Ben Hur, The Producers, Manhattan, Gone with the Wind • Tickets are free o A corporate sponsor subsidizes the series Art Cinema • Mondays and Tuesdays in the month of May; a different film each day_ • Classic, foreign and independent films • Examples: Rust and Bone, Sound City, The Playroom, If l Were You, Simon Killer • Tickets are $10 each SEASONALITY The Lyric's primary season runs from October to April. Summers are.typically the off- season in Florida due to the number of people who have second homes or vacation in Florida during winter months. EDUCATION The Lyric educational programs serve over 6,000 local children each year. Discovery Series • Performances for school groups • Five shows per year; two performances each on the same day • Affordable group rates • Examples: Maximus Mors. The Three Mess- Keteers ,The,Nutcrocker,FronzinaFamily Science Circus; Bananas, Books & Pancakes AWESOME! Summer Camp e• Began in 2012 • Theater camp for first through eighth grade students • Two sessions arranged around different themes; 18 days each; Monday- Friday; 9a -4p • Tuition is $375 for three-week session; $25 registration fee; 10% discount for siblings ©1013 AMS Planning& Research Corp. -1'3 - August 2013 • Approximately 500 children participate° • Donors help to pay the tuition of to 50 underprivileged students Artist Resid'encv • Began in 2010 • Brings professional artists into the schools for classes and workshops • Lyric pays focfees and expenses (with the help of sponsors) for two to three performers each year • Flutist Nestor Torres ViolinistJoshLfa Bell have participated in the past Master Classes •,. For emerging and established area artists. EVENT RENTALS The auditorium and lobby are available for private performances,and receptions, charity fundraisers, civic presentations, and individual, rentals. BOX OFFICE Tickets are sold at the Lyric box office, by phone, or online. The box office is open Monday through Saturday from loam to 4pm. There is a $3 restoration,fee per ticket, which supports preservation and restoration of the facility. Subscriptions are available to the Ovation Series; Nostalgia Concert Series, and the Broadway at The Lyric Series. A processing fee ($5r7 depending on the series) is charged forsubscription orders. CONCESSIONS A cash bar isavailable in the lobby before performances and during intermission. 0 2013 AM5 Planning & Research Corp. -14- August 2013 Fairfield Theatre Company Fairfield, CT FACTS IN BRIEF" Facilities 225 -seat theater Operating Structure Owned by the Town of Fairfield; leased and operated by Fairfield Theatre Company, a 501(c)3 Staff 11 full -time; 20 part-time FY 2010/11 Revenues $2,676,042 FY 2010/11 Expenses $2,687,036 Earned Revenue 77% of operating expenses Programming I Concerts, limited theater and film, educational Program MISSION To establish and sustain venues for the presentation of plays, concerts, lectures, artistic work - shops and exhibitions for the most diverse audience possible, as often as we possibly can. In this way we will strengthen our community; nurture, enrich, and enlighten the lives of those we touch; and make our world a better place one great performance at a time. FACILITY Fairfield Theatre Company (FTC)'s venue, StageOne, is often voted the best place to hear live music in the region because of the quality of the sound, the intimacy of the space, and the caliber of the artists. Theater • Capacity: 225 seats • Black -box venue • 18'x18' thrust stage • Three sided seating with three rows on each side and nine rows in front of the stage " Information for this case study was obtained from the Fairfield Theatre Company website, www.fairneldtheatre.org accessed July 2013, the Fairfield Theatre Company 2011 IRS Form 990, the article Hodenfield.'Fairfield Theatre Company's John Reid moves his big plans to center stage." Fairfield living Magazine. 2012. Accessed 23 July 2013. http:// www .fairriieldllvingmag.com /f/Tmn -Talk- 2012 /Up -Next/ and an interview with John Reid, Executive Director in July 2013, unless otherwise noted. ©1013 AMS Planning & Research Corp. -is- August 2013 Gallery Warehouse Space a 8,000 sq ft a Not often used due to building code restrictions Tlie StageOne building is owned by the Town of Fairfield and is, leased to FTC for $1 per year; plus $2 for every paid admission. FTC is in the tenth year of a30 -year lease. FTC operates the facility, and is responsible for renovations, which totaled over $650,000 the first eight years. The Town helps.wiW some long- standing maintenance and structural issues in the building, but for the most part FTC is responsible for all enaintenance and upkeep. In orderto present larger capacity concerts, FTC also rents the Klein Memorial Auditorium, a 1,400 seat proscenium theater in Bridgeport; CT, and the Norwalk Concert Hall, a 1,036- seat venue in Norwalk, CT several, times each year. Parking is not a problem for the venue: It is located next to a train.station and the station's parking is available after hours. There are also several free municipal lots available within walking distance. OPERATING STRUCTURE FTC is a 501(c)3 charitable organization governed by a,20-member board of directors. Executive and Artistic Director John Reid, who took over in January of 2012, manages the organization. Reid had previously worked in senior leadership positions at Care; World Vision, and other not- for- profit organizations. He also has history with producing theater and television commercials, and is a professional musician. Reid oversees 11 full-time staff, 20 part-time staff; and occasional interns. part-time staff includes bartenders, sound engineers, and house managers'. FTC has about 50 volunteers each yearthat help with events, ushering, distributing posters and fliers, maintenance and building upkeep, and assist with fundraising and marketing. BACKGROUND FTC Was established in 2001 by Mlles Marek. The original intent of the company was to bring in well - reviewed closing plays from off -off= Broadway to Fairfield. The first season of plays was held on the campus of Fairfield University. The current venue, StageOne, opened in 2004 in former factory building downtown Fairfield. The leadership also began to incorporate jazz and chamber music into its programming and realized StageOne was a great venue for live music. Eventually, the theater programming began to lose money and by 2006, to help the theater, survive, the leadership began.to bring in more concerts, whichrwere less expensive to present. The concerts were successful. The venue's great acoustics and easy accessibility, located right next to Fairfield train station on the commuter line to New York, helped to draw crowds. It became a go -to stop for artists on the Newyork- Boston circuit, who loved the intimacy of the space.. In 2007,. FTC took over programming and operations of the 1,400 -seat Klein Auditorium, owned by the neighboring City of Bridgeport, where it presented one to two large -scale concerts each month. FTC operated the Klein until 2010,,when the City of Bridgeport resumed' management. Connections from the Klein venture opened the door to booking even more well -known artists at StageOne. Concerts helped the company to break -even status in 2008, but the economic downturn and O 2013 AMS,Plonning & Reseorch Corp. -16- August 2013 the organization's debt caused, setbacks that almost closed the theater in the followingyears:u FTC. rarely presented drama anymore. In November of 2011, founder Miles Marek,stepped down to pursue more theatrical opportunities. Current Executive and Artistic. Director John Reid took over in January of 2012. FTC is now primarily a concert venue. It has turned around its operations over the past two years and is currently operating above break -even. The facility recently underwent renovations that included an exterior paint job and moving the box office and the entrance to the front of the building. The. Gallery, which opened in August 2012, now occupies a space within the building formerly rented to the Fairfield Arts Council. Future plans may include adding a 500- to 600 -seat theater in the warehouse space. COMMUNITY FTC is located in Fairfield, CT, a coastal town on Long Island Sound about 50 miles east of New York City. Approximately 20,000 patrons attend performances at FTC's StageOne venue each year, with another .20,000 attending FTC.concerts at Vher locations. Demographics: Community 2011 Population Land Area Density Fairfield, CT13 59,625 30 mil 1,985 people /mil Fairfield County, CT14 916,829 526 mil 1,482 people /m i2 Metro Statistical Area 2010 Population Land Area Density New York Tri-State Area' 19,567,410 11,842 miz 1,652 people /mil As of 2010, Fairfield County residents were 80.6% white, 11.9% Black or African American, and 5.2% Asian. 17.8% were. of Hispanic ethnicity (any race). 61.9% of the County's population was between 18 and 65 years of age and 44.0% of residents had a college education. The median household income was $82,558. The median home.value was $466,700 and the homeownership rate was 70.4 %.11 According to FTC, its primary demographic is male, aged 45 -55, making $250,000 or above, and most likely college educated with an advanced degree. This demographic tends to eat out regularly-and be a consumer of marquee brands. REVENUE /EXPENSE: FY'2010 /11 The 2010/11 fiscal year, the most recent year for which public information is available, resulted in revenue, of $2,676,042 and expenses of $2,687,036, generating a net loss of $10,994. 22.5% of revenue was contributed (including membership's). The previous fiscal year resulted in a net gain of $44,354. Mike. "FTC Sets the Stage." Townvibe. Holiday 2010. Accessed 23 July 2013. http: / /.ww.townvibe.com /Fairfield /`Holidav - the -Sta a and Spiegel, Jan Ellen. "Pumping Life Into a Performance scene. "New York Times. 27 February, 2009. Accessed July Cc nnecticut Economic Resource Center. "Fairfield, CT•CERC Town Profile 2012." Accessed August 2013. hftP: / /www:cerc.com/TownProf les /Customer- Images /fairfiield.pd f " U.S'. Census Bureau quickFacts. "Fairfield County, Connecticut." Accessed August 2013. httP:H/ ulckfacts.census.gov /qfd /states /09 /09001.html "U.S. Census Bureau. 2020 Census Population and Housing Tables; http: / /YAyw. census. gov / population /www /een2010 /cph- t/cph- t- B.html 's U.S. Census Bureau.QUICkFacts. "Fairfield County, Connecticut." Accessed August 2013, 0 2013 AMS Planning & Research Corp. - 17 August 2013 Revenue Contributions, Gifts, Grants Membership Dues $133,393 Fundraising Events $134,567 Other Contributions, Gifts, Grants $333,482 Program Service Revenue Box Office /Concessions $1,995,011 Education $79,350 Investment Income $239 TOTAL REVENUES $2,676,042 Expenses Compensation, Benefits $808,946 Payroll Taxes $71,179 Fees for Services Accounting $4,750 Other $89,663 Advertising and Promotion $74,966 Office Expenses $57,866 Occupancy $40,889 Interest $17,274 Depreciation and Amortization $56,630 Insurance $18,940 Theatre Production $1,410,925 Printing $35,008 Other Expenses TOTAL EXPENSES $2,687,036 Revenue less Expenses ($10,994) Total Assets $975,355 Total Liabilities $1,055,131 At the end of the 2010/11 fiscal year, liabilities included approximately $0.5 million in accounts payable, $0.5 million in secured mortgages and notes payable, and $76,000 in deferred revenue. Reid estimates that 50% of the operating budget is covered by ticket sales and the rest is covered by fundraising, sponsorships, memberships, and rental income. Recent fundraisers have included the Fairfield Road Race's half marathon and a benefit concert, two events where proceeds benefited several charities. FTC also hosted a dance -party type Gala. FTC recently received a $20,000 Fairfield County Community Foundation grant to install print -at -home ticketing software that makes use of bar code scanning. MEMBERSHIPS AND SPONSORSHIPS FTC has a seven tier membership program for individuals. Three basic tiers are available for donations of $50 -$100 and four premium tiers for $250- $2,500. Benefits increase with each tier and include pre -sale © 2013 AMS Planning & Research Corp. _18- August 2013 access before the general public, ticket discounts, and members -only events. Higher levels receive a first look,email and VIP parking at the Klein Auditorium. Examples of members -only events include private concerts with Shawn Colvin, Buddy Guy, The Funky Meters, and Voices of the Wetlands-All-Stars. FTC has about 1,400 members, though the number fluctuates. Reid feels memberships are an easier way to gain support than through donations because. it attracts people who are interested in supporting the 'organization; but who also, for practical purposes; gain a premium. FTC also has four sponsorship levels • Community Sponsorships: Benefits include recognition, membership. and Invitations to special events • Show. Sponsorships: Benefits include honored gueststatus, tickets to the show, and promotion • Season Sponsorshlpsu Benefits are built on a case by case basis and. include show sponsorships, receptions, branding, meetings and events, etc. • Corporate Membership: The highest sponsorship level with benefits including first look access concierge ticketing, a pre -paid ticket.plan,show sponsorships; special recognition, and VIP parking. Some sponsors participate to support the theater or particular artist, while others are trying to reach a particular,upper- income demographic for marketing purposes. PROGRAMMING FTC offers the following programming: Concerts: • Over 170 concerts per year representing a variety of musical genres, primarily blues, jazz, rock, and bluegrass • The goal is three to four shows per week • Ticket prices range from $15to over $100, and average approximately $40 FTC has a third party talent buyer who serves as direct liaison to the agencies. The talent buyer is paid based on ticket sales and the number of ticket sold. Booking and working with the talent buyer consumes about ten hours of the Executive Director's time each week: NCTC of FTC.Theater Series: • A new,program this year • Partnership with Northeast Children's Theatre Company (NCTC), a not- for - profit company that produces professional, family theater • Three productions, each running for four matinee performances overtwo weekends Community Cinema Series: • In collaboration with PBS's Independent Lens • One to five screenings per season • One -hour film screening on importan'tsocial issues followed by a panel discussion with local experts, community leaders, and key organizations familiar with the issues in the film • Tickets are free ©1013 AMS Planning ,& Research Corp. _19- August 2013 Visual Art: e The gallery is programmed by co. -.op of local artists SEASONALITY FTC is a year -round venue. It does not change its programming by season though there is a lull in the summer due to area'festivals, which draw more bands to the area. The competition makes it more difficult to attract patrons and book artists that have the opportunity to play at the festivals. Because of this, FTC, may do fewer and more low -risk concerts in the summer. It is also careful when programming around holidays and school breaks. EDUCATION FTC offers the following educational program: FTC Saturday Kids: • In partnership with KEYS (Kids Empowered by Your Support), a Connecticut not- for - profit • Six -month series of music workshops held on Saturday mornings from January to June • A mix of one -to -one instruction and day -long group workshops in classical guitar, violin, cello, jazz improve, singing, and percussion • The program concludes with short recital at StageOne EVENT RENTALS The theater, lobby; and,gallery are available.for parties, fundraisers, or corporate events. The.venuet hosts approximately two events a month, which are primarily fundraisers for local not- for - profits. Rentals are usually on weekdays, due to the higher opportunity cost of not doing a concert on the weekend. Theater rentals average $2,0007$3,500 per night, with reduced not- for- ,profit rates averaging $1,500- $3,000. Actual costs a,re negotiated. The gallery rents for $500. Rentals include-front of house and technical staff. Additional charges for box office and ticketing apply. The warehouse space is currently used for the annual gala; but is not rentable due to the lack of a sprinkler system: BOX OFFICE FTC manages its own box office and is thesole provider of tickets for its presentations: Tickets can be purchased through its website, by phone, and in person. The box office is open 12p -Sp Monday through Sunday and for extended hours prior to performances. The box office chargesa $2 processing fee foreach online and phone orderto defray, the cost of ticket printing and labor, as well as a $5 convenience fee for online ticket orders that covers credit card processing and the cost of the online ticketing system. Afacility fee of $2 per ticket is collected for StageOne orformancesand passed on to the Town of Fairfield as part of the lease agreement. A facility fee of $4 is collected for Klein Auditorium concerts, which is passed on the City of Bridgeport, who owns and operates that-venue. 0 2013 AMS Planning & Research Corp. -20- August2013 CONCESSIONS Both StageOne and The Klein Auditorium have a full cash -only bar and limited snacks such as chips and candy. FTC does not provide food. FTC has a full liquor license and all concessions are handled in- house. Average patron spending on concessions varies between $2 and $12 (gross) depending on the artist. The net depends on cost of sold and labor. The bartenders make minimum hourly wages plus tips. CATERING FTC does not provide catering and does not have a food prep area, It will provide a list of previous caterers, but does not make recommendations. FTC does not charge a catering fee, KEYS TO SUCCESS The facility is able.to attract high - caliber artists in part because of its routing on the path from Boston to New York City. Artists also love the venue because of its intimacy and the closeness of the audience. According to Reid, FTC has a decent sound system and decent production people. Artists who play in the venue remark that it's the friendliest place they've played. The FTC staff members are music people and it is important to have industry professionals as part of the team. For the musician, it is about the experience. FTC's reputation among artists has been built up over time, and it is a specific area of focus . for the organization. O 2013 AMS Planning & Research Corp. -21- AUgust2013 Napa Valley Opera House Napa, CA FACTS IN BRIEF17 Facilities 486 -seat proscenium theater; 198 -seat cabaret theater Operating Structure Owned by Historic Theater Napa Valley, a 501(c)3, and operated by Napa Valley Opera House, a 501(c)3 Staff 7 full -time; 2 part-time; additional hourly labor for events FY 2010/11 Revenues $1,726,658 FY 2010/11 Expenses $2,479,346 Earned Revenue 40% of operating expenses Programming I Concerts and events, comedy, film, limited educational program MISSION The Napa Valley Opera House enriches the cultural experience of a diverse community - offering distinctive performing arts and preserving a unique historic theater. FACILITY The Napa Valley Opera House (NVOH) has two performance venues: Margrit Biever Mondavi Main Stage • Capacity: 486 seats • Proscenium stage • 33' deep x 29' wide stage with 30' of wing space • Fly system with 34 line sets • Orchestra pit • Marley dance floor available • Two individual and two chorus dressing rooms 17 Information for this case study was obtained from the Napa Valley Opera House website, www.nvoh.org accessed July 2013, the Napa Valley Opera House 2011 IRS Form 990, an interview with Peter Williams, Executive Director in August 2013, and the article Paulsen, Sasha.'City Winery Lease would Transform Opera House." 6 July 2013. Napa Valley Register. http: / /napavalleymgister.com /news /local /city- winery-leaw- would- transform - opera- house / article_ de80f690- e68f- 1le2- a2a2 -ODla4bcf887a.html, unless otherwise noted. 0 2013 AMS Planning & Research Corp. -22- August 2013 Cafe Theatre u Seating for up to 198 at cafe tables Free street parking is available across from the venue. Additional paid street parking and numerous lots are available nearby. OPERATING STRUCTURE The facility is owned by HistoricTheatee Napa Valley, a SO1(c)3 organization, and leased and operated by Napa Valley Opera House, Inc (NVOH). NVOH is a 501(c)3 charitable organization governed by a 13 member board of directors. Peter Williams is the current Executive /Artistic Director. he came to NVOH in 2011 after 12 years booking concerts at Yoshi s Oakland and Yoshi s San Francisco. The sevenfull -time and two part-time staff positions are: • Executive /Artistic Director • Development Director • Senior Accountant • Production Manager • House Manager /Artist Services • Maintenance Manager • Janitorial Services Additional pat-time staff is hired on a pershow basis as needed. The organization has approximately 100 volunteers who-serve in Various capacities, such as ushers, concessionaires, assistant house managers, special events volunteers, and also provide administrative. and office assistance. Most volunteer support is show- related. BACKGROUND The opera house first opened in 1880 and hosted events, including vaudeville, plays, lectures,and music concerts. The facility included a 1,300 seat venue built on the second and third floors, with commercial and retail space on the first floor below. It regularly drew.almost sell -out crowds. In 1906, the building was damaged and closed for several weeks due to the San Francisco earthquake. After repairs, the building re- opened and programming continued for several years, but the organization experienced declining audiences due to the. rising popularity of silent movies. When faced with competition from a new movie and performance venue that opened in Napa in 1914, the organization decided to temporarily close its doors. The temporary closure lasted for almost 90 years. In the late 1960s, plans for redevelopment threatened the shuttered, aging, and very decayed facility, but through the efforts of dedicated community members, the building was designated on the National Register of Historic Places in 1973. Plans were made to restore the theater. The not - for - profit Napa Valley Opera House, Inc. was formed in 1985 to purchase the building from the developer who owned the.site and to raise capital funds. A capital campaign was launched and the building's facade was restored in ?1996. A $2 million challenge grant in 2000jumpstarted fundraising for a complete restoration. The $13 million renovation included earthquake retrofitting and extensive rehabilitation, as well as adding modern amenities suchas sloped seating, second floor dressing rooms, additional restrooms, and a kitchen. A portion of the building, the 2013 AMS Planning & Research Corp. -23- August 1013 new first floor Cafe Theater, opened in 2002. The grand re- opening of them a! n theater, with a reduced seating capacity of496, was in August of 2003. The organization struggled for many years under the burden of its construction debt, having to fund raise for the loan payments as well as building operations. In 2011, the city of Napa made a $1.5 million forgivable loan to NVOH to help pay its debts. This loan, combined with a new capital campaign, allowed the organization to retire its mortgage in 2012. Historic Theater Napa Valley was created at this time to take over ownership of the building and protect it from future debt. NVOH leasesand continues to operate the venue. Annual fundraising for operations continues to be difficult due to the limited donor base in the area and the high costs of running the building. NVOH iscurrently considering a ten -year lease to a for - profit company that would operate the theater as a concert venue. Rental income would allow NVOH to program community events (about 25% of total programming) and maintain the venue. The plan was still under discussion at the time of this case study. COMMUNITY NVOH is located 49 miles from San Francisco. It serves the Napa Valley and the surrounding areas and attracts more than 30;000 patrons each year, with one -third coming from the Greater Bay Area and Sacramento. Demographics: Community1e 2010 Population Land'Area Density Napa, CA. 76,948 18 mil 4,311; people /mil Napa County, CA 136,484 748 mil 182 people /mil Nearest -Large MetropolitanArea19' 2610 Population Land Area Density San Francisco - Oakland- Fremont, CA 4,335,391 2,470 mi' 1,755 people /mil As of 2010, Napa County residents were 85.6% white, 2.3% Black or African American, and 7.4% Asian. 33.1% were of Hispanic ethnicity (any race). 61.5% of the County's population was between 18 and 65 years of age and 30.7% of residents had a college education. The median household income was $68,641. The.median home value was $521,700, and the homeownership rate was 63.3 %.20 REVENUE /EXPENSE: FY 2010/11 The.2010 /11 fiscal year „the most recent yearfor which public information is available, resulted in revenue of $1;726,658 and expenses of $2;479,346, generating a net loss of $752;688. The previous fiscal year had resulted in a net loss of $622,658. Revenue Contributions, Gifts, Grants Fundraising Events $245,169 Other Contributions, Gifts, Grants $731,426 I$ U.S. Census Bureau. "Napa County, California QuickFacts.” Accessed August 2013. http: / /quickfacts. census .gov /qfd /states /06106055.htmi "U.S. Census Bureau. 2010 Census Population and Housing Tables; http: / /www. census.gov/ population / www /cen2010 /cph- t /cph-t- 5.html i0 U.S. Census Bureau. "Napa County; California QuickFacts." Accessed August 2013. http:/ /quickfacts. census.gov /qfd /states /06 /06055.html O 2013 AMS Planning & Research Corp. -24- August 2013 Program Service Revenue Performance Revenue $872,965 Concessions Income $56,135 Rental income $42,599 Tickets and Others $5,910 Other Program service revenue $7,133 Other Revenue Fundraising Events ($234,679) TOTAL REVENUES $1,726,658 Expenses Compensation, Benefits $628,848 Fees for Services $74,881 Advertising and promotion $155,720 Occupancy $130,081 Interest $64,178 Depreciation & Amortization $327,539 Insurance $40,237 Performance Expenses $25,487 Food and Beverage $38,356 Performer Fees $861,567 Other Expenses $132,452 TOTAL EXPENSES $2,479,346 RevenuelessExpenses ($752,688) Total Assets $10,567,906 Total Liabilities $4,082,599 At the end of the 2010/11 fiscal year, liabilities included approximately $0.3 million in accounts payable, $3.5 million in secured mortgages and notes payable and $336,000 in deferred revenue. The organization paid off the mortgage in 2012. Production costs average $10,000 per show. Tickets sales fund approximately 53% of the operating budget. The organization receives some operating support from the City in the form of project grants, which are applied for each year. MEMBERSHIPS AND SPONSORSHIPS NVOH has approximately 300 members. There are six membership levels offered for donations of $50- $1,000. Membership benefits increase depending on the level and include priority ticket ordering, ticket exchange privileges, local discounts, invitation to special events, drink coupons, recognition, and exclusive events. Lifetime memberships are available with a $2,500 donation through the Take a Seat program. Studio 1030 is a special group of supporters that have opportunities to attend special private events and meet guest artists. Individual memberships are available at three levels for donations from $1,500- $10,000. 0 2013 AMS Planning & Research Corp. -25- August 2013 There are six corporate sponsorship levels ranging from $500- 10,000. Benefits include tickets, special events, recognition, and marketing. NAPA VALLEY OPERA HOUSE LEAGUE The Napa Valley Opera House League is an organization of women who are dedicated to supporting NVOH. The organization, formed in 1989, helps with fundraising efforts and promotes NVOH in the community. The League holds several fundraisers throughout the year, hosts post-performance receptions and promotes upcoming events. The League has membershipmeetings once a month, as well as social events. Active members pay yearly dues of $125, attend at least five meetings or events, and serve on at least one committee: PROGRAMMING The number of NVOH presentations has varied from just over 100 two years ago to a high of 200, which proved too much for the market to support. The most recent season had 120 events. Tickets range from $15 to $50, with an average of 50% of seats sold across all live programming. Film varies; but averages 120 seats sold: The executive director is primarily responsible for the programming. Concert Presentations • Eight to ten presentations per month, primarily on weekends • Genres: Classical, World Music, Bluegrass, Americana, Jazz • Pop artists with name recognition and singer- songwriters do well in N.VOH's market • Artist fees range from $2,50010 $50;000, depending on the act, but they are most successful with artists in the.$10;000'range, in termsaf return on investment in financial and staff' resources o ExamplessNotiono/ Circus of the People's Republic of China, Septeto National De Cuba, Grease Sing- Along, Operamaniocsl, The Parker Quartet Inti- lllimani, Vienna Boy's Choir, Punch Brothers, Dan Hicks, Riders in the. Sky, Ballet Folklorico, Greg Hahn Corned'y • Comedy series in the Cafe Theater Film • Tuesday Night Flicks: Classic Films hosted by Richard Miami once permonth, o Examples' To Hove and Hove Not On The Waterfront, Psycho, Meet Me in St. Louis a Documentary Films o Example: History of the America's Cup • 'International Film Series o Presented by The International Film Showcase, a division of the Lamorinda Film and Entertainment Foundation (LFEF) • Napa Valley Film Festival (NVFF) o The seven day festival features over 100 new independent films at 12 venues in four area villages • Other Classic Features o Example: The Big Lebowski • Opera Film Series o Examples: Glinka's Ruslon.and Lyudmila, Wagner's Die Walkure O 2013 AMS Planning & Research Corp. -26- August 2013 Films are obtained directly from studios and distributors; expenses for film screenings area guaranteed fee plus a percentage of sales to the studio EDUCATION NVOH currently has a limited education program„ but it planning to build a more robust program: Current programs include: Community Access Program • Free or discounted ticketsare provided to local service organizations, including senior centers, veterans homes, and youth agencies • Funded by corporate partners School Program Brings professional performances and artists into local area schools Workshops and Programs for Youth • Open rehearsal and workshops with touring artists • Missoula Children's Theatre Workshop EVENT RENTALS NVOH hosts approximately 30 -40 rental events each year. The main . theater is available for rent for seminars and presentations and the Cafe Theatre is available for receptions. Base rental rates are $3,500 for the main theater and $2,500 forthe Cafe Theater. Not - for - profit rates are $2,500 and $1,500 respectively. The kitchen is also available for additional fee. Ticketing services are available for a $250 set -up fee. Technical labor rates are 'negotiated according to need. NVOH provides low -cost meeting and performance space for not - for - profit organizations including: The Napa Chamber of Commerce, Friends of Hispanic Network, Arts Council Napa Valley, Napa Downtown Business Association, Napa Valley Coalition of Nonprofit Agencies, Napa Valley College and Oxbow Public Market. BOX OFFICE. All tickets are sold through the NVOH box office, which is open from 12 -6pm Monday through Saturday and until show time on performance days. Ticketing fees are: Y $6 per transaction for phone orders a $2 per ticket for online . orders e All orders,incur a$3 /ticket Historic Preservation Fee that is designated for upkeep and repair of the historic building Films under $12 and some other performances may havedhe Historic Preservation Fee waved O 2013 AMS Planning & Research Corp. -27- August 2013 CONCESSIONS Concessions.are all handled in -house and consist of beer, wine, and snacks. They do not serve food. Concessions have been a good revenue stream for the venue and became more successful when management began allowing drinks into the theater itself. CATERING' NVOH does not provide catering, though it does have a full catering kitchen available. The cost of staffing has kept it from providing this service. KEYS TO SUCCESS According, to Williams, a key to success would be not having any debt an'd having'some reserve cash available. Another lesson the organization has learned is that it is importantto pay for marketing (both staff resources and actual marketing spend), which is needed to draw audiences to the venue and drive tickets sales. Learning the de_ mographics of the area and programming correctly to that market is also an important challenge. Williams has found that it is helpful to have experience and connections with agencies and artists in order to successfully program the venue. The artist experience is also important. The venue offers an intimate setting, fine acoustics, and a personal ambiance that artists complement them on. 0 2013 AMS Planning & Reseorch Carp. -28- August 2013 Appendix D: Potential Audience Surve Potential Audience Survey In July /August 2013, during the initial development stages of the business plan, AMS administered a survey to the Newport Beach community in order to understand the potential uses of the Balboa Village Theatre. This initial survey was administered to a convenience sample and was not intended to be statistically reliable for the market, but did provide useful insight into the early planning process. The survey report follows. Balboa Performing Arts Theatre Foundation Balboa Village Theatre Business Implementation Plan Page D -1 Report April 2014 © 2014 AMS Planning & Research Corp PLANNING & RESEARCH for the Arts . Entertaitneit Industries Balboa Potential Audience Survey Report August 19, 2013 n IIII III I ,� T� At Survey Purpose AMS Planning & Research Corp. (AMS) administered an arts and cultural consumer survey in order to understand the current level of need for a facility in the. location of the historic Balboa Theater as well as the potential use of that proposed facility. + Online Surveys An email list from the Balboa Performing Arts Theater Foundation was provided which included donors as well as interested parties in the proposed facility in the location of the historic Balboa Theater. Additionally a master survey link was posted on the Balboa Village Advisory Committee. page on the. Newport Beach City Hall website and distributed through social media by the Newport Beach City Hall, Visit Newport Beach and the Balboa Theater. A total of 71 respondents completed the survey; 52 respondents came for the email list and an additional 19 respondents came by way of the master survey link. This was a convenience sample and therefore no statistically` reliable conclusions may be drawn; however it does provide useful information. for planning purposes. 2 85.3% of survey respondents indicated that they were in favor of a renovation to the Balboa Theater. ► The genres of Five performances and film .screenings that respondents indicated that they were most interested in corresponded to the genres that they would most likely want to attend at a renovated Balboa Theater, which includes: musical theater (98.1%)., non - musical stage, plays (94:4%), popular music. concerts (92.7%). and mix of classic films (78.2%), contemporary films (76.4 %) and independent films (75.9 %). ► Segerstrom Center for the Arts was the most commonly last attended venues in Orange County (45.5 %) for musical theater performances, which should be considered carefully given that they have the ability to program large -scale touring Broadway shows. ► 77.8% of respondents indicated that they frequently have a full meal in association with their attendance at live performances and /or film screenings - this could be useful in booking at potential partners for events at a renovated Balboa Theater. 3 PLANNING &RESEARCH . . Entertainment Industries Survey Results Most respondents indicated that they were at least somewhat interested in attending live performances (92.9 %) as well as attending film screenings (90.2 %). In general, would you say that you are in attending live performances? (n =70) Not at all Interested Not very interested^ 4.3% 2.9% \ Somewhat xtremely d 18.6% Interested 44.3% Very Interested 30.0% I On average, respondents indicated that they attend live performances and film screening with almost the same frequency in a typical year. However, on average, respondents indicated that they were willing to travel greater distance to attend live performances as compared to film screenings. 9 Minimum Maximum Median Mean Live performances 0 34 6 7.7 Film Screenings 0 52 5.5 8.33 In general, how far willing are you to travel to attend a live performance or film screening? Minimum Maximum Median Mean Live performances 1 400 20 37.52 Film Screenings 0 400 10 25.59 9 Musical theater (93.7%) and non - musical stage plays (89.1 %) were the top genres of live performance that most respondents were at least somewhat interested in; contemporary /first -run films (91.7 %) and independent films (83.9%) were the genres of film screenings that most respondents were at least somewhat interested in. How interested are you in the following genres of live performances or film screenings? Musical theater (n =63) Stage plays (non - musical) (n =64) Contemporary/First -run films (n =60) Rock or pop music concerts (n =61) Independent films (n =62) Concert band performances (n =64) Jazz concerts (n =65) Orchestral performances (n =62) World music concerts (n =63) Classicfilms (n =64) Foreign films (n=61) Opera performances (n=63) Dance performances (n =64) Bluegrass, folk, or country music concerts (n =64) Lectures (n =64) Choral performances (n =63) Family /Children's performances (n =63) 0% 20% 40% 60% 80% 100% ■ Extremely interested u Very Interested Somewhat interested a Not very interested ■ Not at all interested rA 77.8% of respondents indicated that they frequently (if not always) have a full meal when they attend a live performance or film screening; 68.8% of respondents indicated that attending a live performance or film screening is frequently a social event. When you attend a live performance or film screening, how frequently do you also do the following? Have a full meal (lunch, dinner) before or afterwards (n=63) Socialize with friends (n =64) Have a drink at a bar or pub before or afterwards (n =63) Bring or host and out of town guest or client (n =63) Have a cup of coffee before or afterwards (n =64) Go shopping (n =63) Attend with children (n=61) 0% 20% 40% 60% BO% 100% ■Always ❑Frequently Sometimes ORarely ■Never Segerstrom Center for the Arts (45.5 %) was the most commonly attended venue for live performances in Orange County. 40% of respondents who indicated that they last attended a live performance at Segerstrom detailed that they had attended a musical theater performance. At what venue did you most recently attend a live performance in Orange County? (n =44) Segerstrom Cen ter for the Arts Pacif is Amphi theatre South Coast Repertory Theatre Orange County Fairgrounds Laguna Playhouse Honda Center Verizon Wireless Amphitheatre Steamers 1 azz Club and Caf€ Stagecoach SaiGon Performing Arts Center Plummer Auditorium Newport Theatre Arts Center Newport Harbor High School Irvine Barclay Theatre Hyatt Newporter 0% 20% 40% 60% 80% 100% M Most respondents had heard of and favor a renovation of the Balboa Theater. Out of 68 respondents, only one respondent had not heard of the Balboa Theater before taking the survey and only two respondents (who came from the master survey link) indicated that they were not in favor of a renovation of the Balboa Theater. Do you favor a renovation the Balboa Theater? (n =68) Don't Know 11.8% 10 In terms of live performances, respondents were likely to attend musical theater performances (98.1 %), non - musical stage plays (94.4 %) and rock or pop music concerts (92.7 %). For film screenings, classic films (78.2 %), contemporary films (76.4 %) and independent films (75.9 %) were the genres that respondents indicated that they would likely attend. How likely would you be to attend any of the following activities /events at a renovated Balboa Theater in the future? Musical theater (n =54) Stage plays (non - musical) (n =54) Rock or pop music concerts (n =55) Independent films (n =54) Contemporary films (n =55) Classicfilms (n =55) Bluegrass, folk or country music concerts (n =53) Dance performances (n =54) Jazz concerts (n =54) Foreign films (n =54) Word music concerts (n =53) Lectures (n =54) Concert band performances (n =53) Opera performances (n =53) Choral performances (n =53) Family /Children's performances (n =53) .I:.- -._ - -- . —_ -1 ----- -- L --' -- 0% 20% 40% 60% 90% 100% ■Very Likely ❑Likely No Opinion Either Way Unlikely eVery Unlikely o� E Q c y m o - s d � w o� Demographic Snapshot Gender Female 69.8% Children No Children 86.2% Education College Degree 84.4% Age Over 55 76.7% White /Caucasian Race not of Hispanic, Latino or Spanish origin 94.5% Income More than $100K 63.0% 13 Most respondents were female (69.8 %) and were aged 55 and over (76.7 %). What is your gender? (n =63) Male What Is you age? (n =60) 25 to 34 35 to 44 3.3% 5.0% 45 to 54 15.0% 65 and over_ 50.096 26.7% 14 Most respondents has at least a college degree (84.4 %) and had annual household income of $1 OOK or more (63.09/6). What is your annual household income? (n =46) Under $25,000 4.3% !OM�... en $25.000 $150,OODor morel $49,999 54.3% 4.3% Between $50,000, and $74,999 13.0% Between $75.000 and $99,999 15.2% Between 5125A00 100,000 and 5149,999 and 5124,999 2.2% 6.5% 15 Most respondents identified themselves of the white race and not of Hispanic, Latino or Spanish origin (94.5 %); most respondents did not have any children under the age of 18 residing in their household (86.2 %). Not of Hispanic, Latino, Hispanic, Latino, or or Spanish origin Spanish origin White 94.5% 1.8% Native American /Alaska 1.8% 0.0% Native Other Multiracial 1.8% 0.0% How many people in your household are under the age of 187 (n =58) Two Pour 16 Survey Respondents by ZIP Code 92661 Newport Beach, CA 92662 Newport Beach, CA 92660 Newport Beach, CA 92663 Newport Beach, CA 92625 Corona Del Mar, CA 92627 Costa Mesa, CA 95008 Campbell, CA 94941 Mill Valley, CA 94587 Union City, CA 92708 fountain Valley, CA 92677 Laguna Niguel, CA 92675 San Juan Capistrano, CA 92648 Huntington Beach, CA 92626 Costa Mesa, CA 92606 Irvine, CA 92010 Carlsbad, CA 91748 Rowland Heights, CA 91602 North Hollywood, CA 91 356 Tarzana, CA 90808 Long Beach, CA 46256 Indianapolis, IN 30004 Alpharetta, GA 19 8 8 5 4 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17 for the Arts and Entertainment Industries Appendix 19 Bluegrass, folk, Rock or pop Orchestral Choral Concert band Dance Stage play (non- Family /Children's music concert Jazz concert or country music Performance performance performance performance Musical theater musical) performance concert Segerstrom Center 2 3% 0.0% 0.0% 11.4% 0.0% 0.0% 4.5% 18.2% 6.8% 2.3% for the Arts Pacific 6.8% 0.0% 0.0% 0.0% 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% Amphitheatre Laguna Playhouse 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.3% 4.5% 0.0% Orange County 6.8% 0.0% 0.0% 0.0% 0.0% 0.09, 0.0% 0.0% 0.0% 0.0% Fairgrounds South Coast 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.3% 2.3% Repertory Theatre Honda Center 4.5% 010% 0.0% 0.0% 0.01/ 0.0% 0.0% 0.091. 0.0% 0.0% Hyatt Newporter 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% 0.09, 0.0% 0.0% 0.0% Irvine Barclay 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.3% 0.0% 0.0% 0.0% Theatre Newport Harbor 0.0% 0.0% 0.0% 2.3% 0.0% 0.091. 0.0% 0.0% 0.0% 0.0% High School Newport Theatre 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.3% 010% 0.0% Arts Center Plummer 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.3% 0.0% 0.0% Auditorium SaiGon Performing 0.0% 0.0% 0.0% 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% Arts Center Stagecoach 0.0% 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.09/ 0.0% Steamers Jazz Club 0.0% 2.391 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% and Cafe Verizon Wireless 0,0% 0.0% 0.0% 2.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Amphitheatre 19 Segerstrom Center for the Arts (n =20) Paclflc Amphitheatre (n =4) South Coast Repertory Theatre (n =3) Honda Center (n =2) Laguna Playhouse (n =2) Orange County Fairgrounds (n =2) HyattNewporter (n =1) Newport Harbor High School (n =1) Newport Theatre Arts Center (n =1) Plummer Auditorium (n =1) Stagecoach (n =1) Steamers jazz Club and Caf6 (n =1) VerizonWlrelessAmphitheatre (n =1) Minimum Maximum Median Mean $0.00 $125.00 $72.50 $62.95 $25.00 $40.00 $37.50 $35.00 $30.00 $40.00 $40.00 $36.67 $50.00 $150.00 $100.00 $100.00 $30.00 $60.00 $45.00 $45.00 $12.00 $35.00 $23.50 $23.50 $50.00 $50.00 $50.00 $50.00 510.00 $10.00 $10.00 $10.00 $12.00 $12.00 $12.00 $12.00 $36.00 $36.00 $36.00 $36.00 $300.00 $300.00 $300.00 $300.00 $8.00 $8.00 $8.00 $8.00 $75.00 $75.00 $75.00 $75.00 20 Rock or pop music concert Jazz concert Bluegrass, folk, or country music concert Orchestral performance Concert band performance Dance performance Musical theater Stage play (non - musical) Family /Children's performance Minimum Maximum Median Mean $12.00 $300.00 $40.00 $70.15 $8.00 $50.00 $30.00 $29.33 $300.00 $300.00 $300.00 $300.00 $10.00 $125.00 $75.00 $72.86 $35.00 $50.00 $42.50 $42.50 $80.00 $80.00 $80.00 $80.00 $0.00 $150.00 $50.00 $55.15 $0.00 $90.00 $50.00 $48.33 $25.00 $40.00 $32.50 $32.50 Gal Appendix E: Market Area Characteristics and Lifestyle Analysis Market Area Analysis In January 2014, AMS completed a market area analysis for three market areas surrounding the Balboa Village Theatre: 1) The City of Newport Beach, CA 2) Orange County, CA 3) 30 -mile drive time from the Balboa Village Theatre The market analysis contains key demographic characteristics for and comparisons between each area. Lifestyle Analysis In order to understand lifestyle behaviors of the population in the 30 -mile drive time market area, the PRIZMNE market segmentation system, developed by The Nielsen Company, was then used to categorize the households in the market based on demographic profiles and consumer research in to psychographic and consumption patterns. The full market analysis report follows. Balboa Performing Arts Theatre Foundation Page E -1 April 2014 Balboa Village Theatre Business Implementation Plan © 2014 AMS Planning & Research Corp Entertainment Industries Balboa Village Theatre City of Newport Beach, California Market Area Characteristics and Lifestyle Analysis AMS Planning & Research Corp. 107 John Street, Suite 1 E Southport, CT 06890 203 - 256 -1616 800 - 887 -3282 llulh"ru Vdh/ ge'lhcalrn- ?W.1 of rnpurv.lfiratb. CA Introduction This report is intended to inforrrthe management of the Balboa Village Theatre about the current resident marketplace and to aid in programmatic considerations for the renovation of the Balboa Village Theatre. An examination of market area characteristics (demographics), as well as lifestyle behaviors present in the resident marketplace, helps define the prospects for, participation in arts and cultural programming. Three market areas are considered in this document: 1) the City of Newport Beach, CA,'2) Orange County, CA and 3) a 30- mile drive from the Balboa Village Theatre. Key demographic variables were examined to better understand market characteristics, including population size and growth, age composition of the population, educational achievement, household income, ethnicity, household composition and occupation. To understand lifestyle behaviors, the PRIZMNr, market segmentation system, developed by The Nielsen Company, was used to categorize the households within each of the three areas into one of 66 segments. Each segment provides a unique understanding of the households located within a particular area based upon demographic profiles and consumer research into psychographic and consumption patterns. While it is hard to determine the particular profile of potential participants for programs in a renovated Balboa Village Page 2 ,I lorkvi rliru Cha tirlerisdcs awl I,i /ell rA•..:I roil her c Theatre; as the exact activity profile is yet to be determined, this document will help inform decision- making around this very topic. By °understanding the marketplace with regar&to the demographic profiles, lifestyles and affinities for arts and cultural activities, the management of the Balboa Village Theatre will be able to shape the activity profile and marketing . strategy for the renovated venue. Key Observations • Income and educational achievement, important indicators of interest in and the propensity to participate in arts and cultural activities, are higher for residents of the City of Newport Beach when compared to Orange County and the 30 -mile drive from the Balboa Village Theatre; Notably, all o:fthese areas possess levels higher than the national average. • The 30-mile drive,from the Balboa Village Theatre has - 40.2 % of its population identifying themselves as being of the Hispanic ethnicity (regardless of race), as well as 18.1' %u identifying themselves as being Asian/Pacific Islander ancestry, the area further from the Balboa Village Theatre is the most diverse in terms of race /ethnicity. • 71.7 %of the households in a 30 -mile drive from the Balboa Village Theatre are classified in tea of the 66 PRIZMiva segments, though a11.66 segments are present in the marketplace; This indicates that although there is Balboa I Wage I10,xurr ( in of \virport Hrueh ( I diversity in terms of socioeconomic statuses, the market itself clusters into a few dominant segments. • Affinity for participation in arts and cultural activities is above average in all three areas of examination with particular interest in attending live music concerts. Demographics The 30 -mile drive from the Balboa Village Theatre has a total estimated population of 4,694,716 in 2013, which is a slight increase (2.5 %) from the population recorded from the Census in 2010. For Orange County, the estimated population is 3,105,680, which is also a slight increase (3.2 %) from the population recorded from the Census in 2010. The growth rate of the City of Newport Beach, estimated to be at 3.9 %, is the largest growth rate observed in the three areas of examination, with an estimated population of 88,286 in 2013. 40.2% of the population in the 30 -mile drive from the Balboa Village Theatre identifies as being of Hispanic ethnicity (regardless of race), which is a larger percentage than both Orange County (34.3%) and the City of Newport Beach (7.7 %). In terms of race, the 30 -mile drive from the Balboa Village Theatre has the largest percentage of its population who identify themselves as being of the Black/African- American race at 4.3 %. Page 3 Warko Iran 07,11,1, r, 1 re1H ! wrJ 1 rL�en l,' In,rhv� SUMMARY OF KEY DEMOGRAPHICS Variable Newport Beach, CA Orange County, CA Balboa Village Theatre 30 -Mile Drive 2013 Estimated Population 88,286 3,105,6811 4,694,716 2010 Census Population 84,945 3,010,232 4,580,932 Median Age 44.9 36.7 36.1 %Generation Y(9-23 yrs) 16.1% 21.1% 2L5% • Generation X(24 -44 yrs) 25.8% 27.6% 27.8% %Baby Boomers (45-65 yrs) 29.9% 26.2% 25.7% % Mature (65+Yrs) 19.9% 12.4% 12.0% Median Household Income $97,030 $71,193 $65,967 % over $75,000 59.7% 47.4% 43.6% %with College Degree 61.7% 36.3% 32.3% Households with Children 21.1% 37.8% 39.0% %Black /African American 0.8% 1.7% 4.3% %Asian /Pacific Islander 7.6% 19.2% 18.1% %His anic(all races) 7.7% 34.3% 40.2% The City of Newport Beach has a higher percentage of its population possessing a college degree (61.7 %) and a higher median income level ($97,030) than the other two areas of examination. The percentage of households with children present is highest in the 30 -mile drive from the Balboa Village Theatre (39.0%). Of the three areas of examination, the City of Newport Beach has the smallest percentage of households with children present (21.1 %) and the highest median age (44.9) of the three areas of examination. The rate of population increase for all three areas of examination is projected to grow in the coming years, with the City of Newport Beach projected to see the largest growth at 6.2 %. The 30 -mile drive from the Balboa Village Theatre is expected to see an increase in population at 4.2 %. Balhna I dlo* lhaaul,- l'in uJ \eupon Nruch ( I COMPARATIVE POPULATION GROWTH, 2000.2018 -� •Mtnpgl BeatRfA •Oranp faunq.CA �Bxew VxyellxaVe 30A»k 0.M 9% LOx M 1% �• 6% !m 5 xlx � 5% LZw SM L1LL g 4% — xxx LM 1% SOOO- 3m01feex•I AIn •x9al Raa) Au MMP J Households located in the 30 -mile drive area surrounding the Balboa Village Theatre contain the largest percentage of children under the age of 18 across every cohort. This suggests that family- oriented performances may be of interest to households that are outside the city limits of Newport Beach. As mentioned, The City of Newport Beach has the smallest percentage of its population identified as children under the age of 18. Page 4 Ilarkel.1 rcu ('hararier(,5(ics and Lif¢Sll'le . Inal rus The City of Newport Beach has the highest median age (44.9) of the three areas of examination and correspondingly possesses the highest percentage of population over the age of 45 (49.8 0%). % EST. 2013 TOTAL POPULATNNL AGES 18 TO 45 BY AGE GROUP 45% 40% 35% $ 30% — S 25%.. 20% _.._ 15% — IOM — X 5% 0% ._ NFOPMBNCN G1 - - • ASe23 -81 • AVM -24 — . roan -20 OMWCMW..GA ftVMVM gThw•80 MhDM % EST. 2013 TOTAL POPULATION, CHILDREN BY ACE GROUP 30% 25% 20% - — — _— Age 15 17 Age 30-11 10% - _ 33%. _ _ • Age5 -9 Y V • A480-4 X 5% 0% - NewpOA 9taf ,,a Orx tg, [A 3afb Aage Theage 36M4 Om• The City of Newport Beach has the highest median age (44.9) of the three areas of examination and correspondingly possesses the highest percentage of population over the age of 45 (49.8 0%). % EST. 2013 TOTAL POPULATNNL AGES 18 TO 45 BY AGE GROUP 45% 40% 35% $ 30% — S 25%.. 20% _.._ 15% — IOM — X 5% 0% ._ NFOPMBNCN G1 - - • ASe23 -81 • AVM -24 — . roan -20 OMWCMW..GA ftVMVM gThw•80 MhDM Italh(v I illag' IhL•4119r ( 51, of \ ,-111,01-1 /reach. ( A %OF EST. 2013 TOTAL POPULATION, ADULTS 45+ 55% 50% 3.0% 40% • ApESAe1099r 1.7% y 6 35% - - . &' • AP IS•M $ 3096 – _ __ __ __ __ • AP 74 25% gp 14.6% — • AP 64 • 4S•54 20% 1L536 , — -- K 15% — ]0% 5% -- 0% Ne OOn Beath. CA Or.W County, CA Wbn VNepl m 3 It 0r Income and educational achievement have been tested and proven to be important indicators of interest in, and the propensity to participate in, arts and cultural activities. Almost 62 % of the population the City of Newport Beach has a college degree and a median income level of $97,030. Residents of the 30 -mile drive from the Balboa Village Theatre have the lowest percentage of its population possessing at least a college degree (32.3 %) and the lowest median income level ($65,967), compared to the other areas studied. Orange County has only a slightly higher percentage of its population with at a least a college degree (36.3 %) than the 30 -mile drive area. The median household income level for Orange County is also slightly higher than the 30 -mile drive area at $71,193. Page 5 25% 10A Ss% 10% L " sx harkvi .lrea Characteristics and b0fl-le InUbvs EST. 2013 HOUSEHOLD INCOME •Hewpon&xM1 CM M d-- S9].OD •PNK COUnry,C4 MeeW • SJ1191 .. Bann VLge i1,eM�e 3OMk Mve'. MNan � 56190 I I u41 W� 511CN SiiQO- SBSCCO MOD) 52,M SIAM 54999 I I ' 550.010 5i® MOOO- sin.= $150." $19.999 599.099 5124.999 510."9 % 2013 EST. ADULTS 125x1 BY EDUCA70N LEVEL Dptlorale Degree RIM hakssowl5nw01 Dvee � rMmon Bn0�.0 .a..9.,.,e,.a Masters Oe &ee � .e•!0Y•%e1BaW4AgW bN I gaChel0n De ®ee A5a0CNlea Degree I Some College. No Degree r (O HIgry5a ratl9ase IO Getl) 4 SYat LNn H.gh Xlleel 0% 5% 10% 15% 20% 25% 30% 35% a0% %OSAOUm1791 Balhoa 1111rrRr 17reatre ( In of Neulron Beach t I The 30 -mile drive from the Balboa Village Theatre has the largest percentage of its population identifying themselves of Hispanic ethnicity (independent of race) at 40.2 %. This is much higher than the City of Newport Beach at only 7.7 %. RACEIETHNICITY White Black/African Amerkan ■.. 'i •Newport aeaN.G Asian/Pac @k Islander j aWanp: COUntl.G i � W boa w44e Theatre 3PMk IMn Other Mlillillillillill• Hispanic- lnh�-.. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 10D% 96 0P POPULATION •Indspardentof Ran Orange County has the largest percentage of married couples and family households, however, as mentioned previously, the 30 -mile drive from the Balboa Village Theatre has the largest percentage of its households with children under the age of 18 living at home (39.0 %). Page 6 1 /arkrr . I r•ru l7Jnru.7crvenrs aaJ blesWe Inahs6+ j .w«porslk«n,G .axaP C..,d.G a8elbm wlsBeThay.36MMdw so96_. _.. _ . __.__. __..._.. ...._ ... ._... 40% 030% . % 20% .._ 10% 0% Mimed G.4ft OYwrFemlrkhle ove Fntlr Hed Fmdewd NaHHIM MMwmMFwMa Household Composition- With Children e rvawpon Beach,U e0ranp Cmnt,.CA a 8albw Vlpap Thaatra 36M4 Drke Single Parent Households (with children under 18) Households with Children under 18 0% 10% 20% 30% 40% I(alhoa I'dhegc lhealre- ( )p ul \eu port Hvaeh. (.I Iho'kel. irea (7101*00rON/R.3 1110 G /6a3/. Imd3:3n The majority of those who work in the three market areas commute over 15 minutes to their place of employment. The City of Newport Beach has a higher percentage that travel less than 15 minutes compared to the other two areas of examination or the national average. "IS [fl3W DIOFD MN 11W1 OY DRW MEW WORN •1[ %XUll tSNXll1[S •If iONMnuW •NiON Wiwlx tlio]9MMUW �tl.AOwM WOU NYy 1nn�lrt NMe Or4e GrnnM lwnX.iA C1N Nxprvl Mnn.lA 11M 094 tq{ A, . In terms of occupation, the City of Newport Beach has the largest percentage of its population working in management and sales roles. The 30 -mile drive from the Balboa Village Theatre, in comparison, has the largest percentage of the population employed in office and administrative support roles. The following chart illustrates the breakdown of the population who work present in each of area of examination by their occupation. Page 7 S1{. 103{ fAl[ 901f 100% In terms of occupation, the City of Newport Beach has the largest percentage of its population working in management and sales roles. The 30 -mile drive from the Balboa Village Theatre, in comparison, has the largest percentage of the population employed in office and administrative support roles. The following chart illustrates the breakdown of the population who work present in each of area of examination by their occupation. Page 7 Halbou Pillage llwww - ('iti a) Newport Heach. C I 2013 % POPULATION 16+ BY OCCUPATION ■ Newport Beach, CA ■ Orange County, CA .l Balboa Wage Theatre W-Mlle Drive Transportation /Moving Personal Care /Svc Sales /Related Protective Svcs Production Office /Admin Support Management Life /Phys /Soc Science Legal Maintenance Repair Healthcare Support Health Practitioner/Tec Food Prep /Serving Farm /Fish /Forestry Edu/Training/Library Construction/Extraction Computer/Mathematical Community /Soc Svcs Business/Financial Ops Building Grounds Maint Arts /Entertain /Sports Architect/Engineer .t larket .trca ('haracverr.rtics and bilesivle . I na6Tvi% 0% 5% 10% 15% 20% 25% % 2013 POP. 16+ Page 8 I .t larket .trca ('haracverr.rtics and bilesivle . I na6Tvi% 0% 5% 10% 15% 20% 25% % 2013 POP. 16+ Page 8 14dltuu I dhl t e l hrdlrr- ('ill o/ %ettwn7 th"wh ( I Lifestyles Beyond demographics, a useful approach to understanding a market is to look at its "lifestyles." By identifying homogenous groups of households within a market area, it is possible to identify households interested in arts and cultural programming. Homogenous groups, or "segments," are determined by aggregating households with similar demographic and lifestyle characteristics. As mentioned earlier, PrizmNE, a market segmentation system developed by The Nielsen Company, is a geographically -based market analysis system that augments demographic data with consumer information. The analysis system classifies every household in the United States into one of 66 unique market segments. Each market segment consists of households that are at similar stages in their life cycle and exhibit similar purchasing patterns, financial behavior and demands for products and services, including cultural activities. The classification system was created by combining information from the Equifax Consumer Marketing Database with US Census demographic data, and other proprietary data sources. Over 100 unique characteristics for more than 160 million individual consumers are used, including financial and consumer activity, demographic, socioeconomic, leisure activity and housing data. Page 9 Udrdrr I car 1'purur(errstira �qd l.ileville bwlvxss PrizmN8 groups arc clusters of PrizmNE segments. Social Groups are arranged into 14 categories based on urbanization and affluence ("SEW', or socioeconomic rank). Lifestage Groups are clustered into 11 categories based on age, presence of children and SER. The top ten unique PriZmNE segments, as well as the related Social and Lifestage Groups for the market area of 30 -mile drive from the Balboa Village Theatre, are as follows: Prizmy, Market Segmentation Balboa Village Theatre 30.Mile Drive Top Ten Segments By Percent Composition Segment Title 4 o Households %Composition Social Group Lifestage Group Money &Brains 292,158 19.19 Urban Uptown Affluent Empty Nests American Dreams 173,214 SL38 Urban Uptown Young Accumulators Bohemian Mix 140,25 9.20 Urban Uptown Young Achievers Young Di eratl 93,283 6.13 Urban Uptown YoungAchlevers The Cosmopolitans 89,559 5.88 Urban Uptown Conservative Classics Urban Achievers 78,003 5.12 Midtown Mix Low -Rise Living 64,600 4.24 Urban Cores llles Big l7ty Blues 54,624 3.59 Urban Cores ilies Upper Crust 53,043 3.48EIIte Suburbs Nests =Empty Multi -Culti Mosaic 52,794 &47MIdtown Mx milies TOTAL 1 1,091,3031 7L6Bf6 Almost 72% of the households present in the 30 -mile drive area fall into one of ten segments. Overall, there is representation from all 66 PrizmNE segments in the marketplace, indicating a variety of socioeconomic statuse. This indicates that although there is diversity in terms of socioeconomic statuses; the market itself clusters into a few dominant segments. Please see the Appendix for more detail on the top PrizmNE segments for the 30 -mile drive area, as well as the corresponding Social and Lifestage Groups. Bulhuu I'llluge Illeufyr < in of \NHpon Bea, li t I Overall PrizmNE profiles can be compared to specific PriZmNE profiles of consumers of products and services in order to develop lifestyle attributes. PriZmNE profiles are indexed against the profiles of consumers of products and services in the following categories: • Automotive Products • Radio Media Usage • Cable & Network TV Media Usage • Retailers/Shopping • Electronics • Sports /Leisure • Finance /Insurance /Investments • Television Viewership • Magazines/Newspapers • Travel • Print Media Usage • Psychographics (personal interests) The index provides a measure of the likelihood that a household will exhibit a certain lifestyle attribute. The national average is 100. Any lifestyle attribute with an index of more than 100 indicates that households within the market area being analyzed are more likely to possess an attribute compared to the average US household profile. For the purposes of this study, Sports/Leisure and Psychographic (i.e., activities and interests) attributes were examined in more detail, specifically those related to arts and cultural participation. The intent of this t hil kel - I r•cu f 'hi n Icl erL6JrA '110 isle t.) le. INull%I.% examination is to gain a better understanding of affinity for participation in arts and cultural activities. The top indexing lifestyles for the three areas of examination are illustrated in the chart below: Market Potential Indices (MPIs) (Na4cnal Average = 100) INDEX Llfosyle Attribute Newport Beach, CA Orange County, OA Balboa Village Theatre 30-Milo Ddw Wang to an Arts Association A 224 179 173 Buy Latin Musi0yr A) 102 136 147 Go to Classical Concert,lyr (A) 186 149 141 Buy Classical Music,lyr(A ) 172 143 141 Buy Jazz Muslc,i r(A ) 165 142 140 Goto RBB /HI Hap /Rap Concert,lyr(A) 102 132 140 Go to Live Theater,l r A) 172 1 142 136 Go to Radt/Pop Concen,lyr A) 159 138 132 Go to Museum 1 r(A ) 154 131 127 Go to Music/Dance Performanm.l r A) 147 130 127 Regular Movie Theater. oer,A A lla 125 127 Take Edumtlon Course, lyr (A) 136 123 121 Interested in The Arts, A r(A) 131 120 lla Buy Rap/Hi Hop Music,l r A BB 110 119 Buy Contemporary Pop Music,lyr A) 112 114 114 Internet Pd me Source of Famil s Entertainment, Agr(A) 108 114 113 Buy 50/7Vs Po litock, Itir A 124 110 108 Play Musical lnstrument.l r(A ) 116 110 108 Internet Prime Source of My Entertainment, Aar (A) us 109 SOB Music is an lm onant Part of My Life, Aar (A) 309 106 106 Make Charitable Contdbution,lyr(A) 124 109 las Consider elf a Creative Person, Aar A) 106 104 103 Listen M Music, 1 r JAI 108 103 102 Radio is My Main Source of Entertai nment,A (A) all 97 101 Do Palntin Drawin Sculptin 1 r A) 87 96 97 TV is Mal n Entertainment Source, Agr(A) 1 1 96 94 Buy Reli ious /GDS el Musio.l r A 74 1 86 as Buy Country Music,lyr A 91 1 77 72 Go to Country Concert,l r(A) 1 102 1 71 64 Page 10 IlNlkwrldlrlvvi ewry ( 'it rvf\viiparli;v,tch,('I Affinity for participation in the following arts and cultural activities is above the national average in a 30 -mile drive from the Balboa Village Theatre: • Going to Classical music concerts once a year indexes at 41' %more than the national average • Going to R &B /Hip- l-lop/ Rap concerts once a year indexes at 40 % more than the national average • Going to live theatre once a year indexes at 36 % more than the national average • Going to Rock/Pop concerts once a year indexes -at 32% more than the national average • Going to a live music /dance performance once.a year, as well as being a "regular movie theatergoer," all index at 27% more than the national average- 0 Belonging to an arts association (73 %) and buying Latin music (47 %), Classical music (41' %o).and Jazz music (40 %) once a year were the other top indexing arts and cultural activities for the 30 -mile drive area Final Thoughts The market area surrounding the Balboa Village Theatre has a favorable profile for arts and cultural participation. Moreover, residents of the defined market area closer to the theatre (i.e.,. the City ofNewport'Beach) exhibit; significantly more favorable attributes associated with arts participation. Median income and education levels are higher than the:national t hot hei ,Ireu ('buraci,a,ialirn nlid /.1AMI,10 Urulitcle average; more than double in the case of the residents of Newport Beach. These demographic characteristics, when coupled with the lifestyle data, and the indexes of arts and cultural interests at least 25% or higher than the national average, indicate that there is the propensity to participate in arts and cultural programs at the theatre. This report has clearly identified market potential. A more detailed understanding of demand for specific types of arts and cultural programs will be examined in the survey research currently being conducted. Page 11 The Appendix that "follows provides additional detail on the top ten Prizm,;e.segments for the 30 -mile drive area and corresponding Social and Lifestage Groups. Hnlhaa I Illa¢e' l•lrasrlrr ('1n .a \ellporl Beach ( I Appendix Top Ten Balboa Village Theatre 30 -Mile Drive Segment Profiles Money & Brains (19.19 %) Wealthy Older Family Mix The residents of Money & -- Brains seem to have it all: • ' a high incomes, advanced de- • 9 grees, and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured lots. Social Group: Urban Uptown Lifestage Group: Affluent Empty Nests 2013 Statistics US Households: 2,526,024 (2.12 1/o) Median HH Income: $87,139 Demographics Traits Urbanicity: Urban Page 12 Income: Income Producing Assets Age Ranges: Presence of Kids: Homeownership: Employment Levels: Education Levels: Ethnic Diversity: Uarkrl Irrul'lurrurlcrr.cnra orJ Mien le Inch cl.. Wealthy Elite 45 -64 Family Mix Mostly Owners Management Graduate Plus White, Black, Asian, Hispanic, Mix Lifestyle & Media Traits • Shop at Banana Republic • Travel for business • Read New York Times • Watch tennis • Mercedes E Class American Dreams (11.38 %) Upper Mid Middle Age Family Mix American Dreams is a living example of how ethnically diverse the nation has be- come: just under half the res- idents are Hispanic, Asian, or African- American. In these multilingual neighborhoods -- lAdhnu 1 dlugr Ihruhv f lh n \rupol-Ocuch ( I one in three speaks a language other than English — middle -aged immigrants and their children live in upper - middle -class comfort. Social Group: Urban Uptown Lifestage Group: Young Accumulators 2013 Statistics US Households: 2,735,953 (2.30 %) Median HH Income: $56,067 Demographics Traits Urbanicity: Urban Income: Upper Mid Income Producing Assets: Above Avg Age Ranges: <55 Presence of Kids: Family Mix Homeownership: Homeowners Employment Levels: Professional Education Levels: College Graduate Ethnic Diversity: White, Black, Asian. Hispanic, Mix Lifestyle & Media Traits • Shop at Kaiser Pharmacy • Visit the zoo • Read Tribune • Watch E! Entertainment TV • Volkswagen Tiguan Bohemian Mix (9.20 %) Upper Mid Middle Age Family Mix Wrkc r Irea (•hanwierrrlrcA and LIA-SI) le. lauh-SA A collection of mobile urban- ites, Bohemian Mix repre- sents the nation's most liberal lifestyles. its residents are an ethnically diverse, progres- sive mix of young singles, couples, and families ranging from students to professionals. In their funky row houses and apartments, Bohemian Mixers are the early adopters who are quick to check out the latest movie, nightclub, laptop, and microbrew. Social Group: Urban Uptown Lifestage Group: Young Achievers 2013Statistics US Households: 2,199,666 (1.85 %) Median HH Income: $55,229 Demographics Traits Urbanicity: Urban Income: Upper Mid Income Producing Assets: Moderate Age Ranges: <55 Presence of Kids: Family Mix Page 13 liu/hrnl 1 dhoti, I' otni, ( rh w Newport 11vvch ( I Homeownership: Employment Levels: Education Levels: Ethnic Diversity: Renters White Collar, Mix College Graduate White, Black, Asian, Hispanic, Mix Lifestyle & Media Traits • Shop at The Gap • Watch foreign movies • Read GQ • Watch Boxeo Telemundo • Audi S4 Young Digerati (6.13 %) Wealthy Younger Family Mix Young Digerati are tech -savvy and live in fashionable neighborhoods on the urban fringe. Affluent, highly educated, and ethnically mixed, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars - -from juice to coffee to mi- crobrew. Social Group: City Centers Lifestage Group: Young Achievers Pa <• 14 2013Statistics US Households: 1,530,460 (1.28 %) Median HH Income: $88,217 Demographics Traits Urbanicity: Income: Income Producing Assets: Age Ranges: Presence of Kids: Homeownership: Employment Levels: Education Levels: Ethnic Diversity: 18rrkvr Ircu ('larrarrerrsrin nerd 01CV11•14- 111o¢..No Urban Wealthy Elite 25-44 Family Mix Mix, Renters Management Graduate Plus White, Asian, Hispan ic, Mix Lifestyle & Media Traits • Shop at Bloomingdale's • Travel to Asia • Read Dwell • Watch Independent Film Channel • Audi A3 Nalbun I'Il111ge Illetair ( 'tn fit \ pll earl Brach ( 'I The Cosmopolitans (5.88 %) Upper Mid Older Mostly without Kids Educated, upper- midscale, �L and ethnically diverse, The Cosmopolitans are urbane SpII - ::1 y couples in America's fast - growing cities. Concentrated •' in a handful of metros- -such ° as Las Vegas, Miami and Al- buquerque- -these households feature older, empty - nesting homeowners. A vibrant social scene sur- rounds their older homes and apartments, and resi- dents love the nightlife and enjoy leisure- intensive lifestyles. Social Group: Urban Uptown Lifestage Group: Conservative Classics 2013Statistics US Households: 1,464,527 (1.23 %) Median HH Income: $56,913 Demographics Traits Urbanicity: Urban Income: Upper Mid Income Producing Assets: High Age Ranges: 55+ Page 15 11arAel Irm 0wrarteristics and /Archie I11014: \I.1 Presence of Kids: Mostly w/o Kids Homeownership: Homeowners Employment Levels: White Collar, Mix Education Levels: College Graduate Ethnic Diversity: White, Black, Asian, Mix Lifestyle & Media Traits • Shop at Macy's • Vacation abroad • Read Audubon Magazine • Watch Masterpiece • Lincoln Town Car Flex Fuel Urban Achievers (5.12 %) Lower Mid Younger Mostly without Kids Concentrated in the nation's port cities, Urban Achievers is often the first stop for up- and- coining immigrants from Asia, South America, and Europe. These young singles, couples, and families are typ- ically college- educated and ethnically diverse: about a third are foreign -born, and even more speak a language other than English. Social Group: Midtown Mix Lifestage Group: Young Achievers 1(alhna I iQaer llreun'r ( ill ul \vn purl Ileucq. ( I 2013Statistics US Households: 1,885,116 (1.58 %) Median HH Income: $36,412 Demographics Traits Urbanicity: Income: Income Producing Assets Age Ranges: Presence of Kids: Homeownership: Employment Levels: Education Levels: Ethnic Diversity: Lifestyle & Media Traits • Shop at FedEx Office • Read comic books • Read New Yorker • Watch soccer • Toyota Yaris Urban Lower Mid Low <35 Mostly w/o Kids Renters White Collar, Mix College Graduate White, Black, Asian, Hispanic, Mix Page 16 Low -Rise Living (4.24 %) Lower Mid Age Mostly with Kids thrrke( .Irea ('Iraraclerwirs and b i•.%(t k Anul sm The most economically chal- lenged urban segment, Low - Rise Living is known as a transient world for middle - aged, ethnically diverse sin- gles and single parents. Home values are low- -about half the national average- - and even then less than a quarter of residents can afford to own real estate. Typically, the commercial base of Mom - and -Pop stores is struggling and in need of a renaissance. Social Group: Urban Cores Lifestyge Group: Sustaining Families 2013Statistics US Households: 1,635,938 (1.37 %) Median HH Income: $27,000 Demographics Traits Urbanicity: Urban Income: Lower Mid Income Producing Assets: Low Age Ranges: <55 Presence of Kids: Mostly w/ Kids lkdbrkr I rdagr Mean., i m W \: ulwrr llew h t I Homeownership: Renters Employment Levels: WC, Service, Mix Education Levels: Some High School Ethnic Diversity: White, Black, Hispan- ic, Mix Lifestyle & Media Traits • Rarely shop online • Buy music from music store • Read Latina • Watch boxing • Minivan Big City Blues (3.59%x) Lower Mid Middle Age Family Mix With a population that's more than 45 percent Latino, Big City Blues has one of the highest concentration of Hispanic - Americans in the nation. But it's also the multi- ethnic address for low- income Asian and African- American households occupying older inner -city apartments. Concentrated in a handful of major metros, these middle -aged singles and single - parent families face enormous challenges: low incomes, uncertain jobs, and modest educations. Ilurkdl Ina t'hararlrrwire and Lilenvic IaahVi.c Social Group: Urban Cores Lifestage Group: Sustaining Families 2013Statistics US Households: 1,358,883 (1.14 %) Median HH Income: $33,242 Page 17 Demographics Traits Urbanicity: Income: Income Producing Assets: Age Ranges: Presence of Kids: Homeownership: Employment Levels: Education Levels: Ethnic Diversity: Lifestyle & Media Traits • Shop at Duane Reade • Go to soccer games • Read Star • Watch Univision • Kia car Urban Lower Mid Low <55 Family Mix Renters WC, Service, Mix Some College White, Black, Asian, Hispanic, Mix R.dAaa f llage I hr au•e 4 N u/ \eirpon lleavlr f •. -I Upper Crust (3.48 %) Wealthy Older without Kids The nation's most exclusive address, _� Upper Crust is the wealthiest lifestyle in America - -a haven for empty- nesting couples over the age of 55. No seg- ment has a higher concentration of res- idents earning over $100,000 a year and possessing a postgraduate degree. And none has a more opulent standard of living. Social Group: Elite Suburbs Lifestage Group: Affluent Empty Nests 2013Statistics US Households: 1,728,572 (1.45 %) Median HH Income: $108,992 Demographics Traits Urbanicity: Income: Income Producing Assets: Age Ranges: Presence of Kids: Homeownership: Employment Levels: Education Levels: Ethnic Diversity: Suburban Wealthy Millionaires 55+ HH w/o Kids Homeowners Management Graduate Plus White, Asian, Mix i larkel Area Charoclerislics and l.ileslvle Ana /rsis Lifestyle & Media Traits • Shop at Saks Fifth Avenue • Vacation in Europe • Read The Atlantic • Watch Golf Channel • Lexus LS Multt-Culti Mosaic (3.47 %) Lower Mid Middle Age Family Mix An immigrant gateway community, Multi -Culti Mosaic is the urban home s for a mixed populace of Hispanic, Asian, and African- American singles and families. With nearly a quarter of the residents foreign born, this segment is a mecca for first - generation Ameri- cans who are striving to improve their lower- middle -class sta- tus. Page 18 Social Group: Midtown Mix Lifestage Group: Mainstream Families 2013Statistics US Households: 2,11 1,544 (1.77 %) Median HH Income: $35,770 Rulhuu 1,111axe 1/leuorc- 01.1 of Nvi port Reach. C I Demographics Traits Urbanicity: Urban Income: Lower Mid Income Producing Assets: Moderate Age Ranges: 35 -54 Presence of Kids: Family Mix Homeownership: Homeowners Employment Levels: WC, Service, Mix Education Levels: Some College Ethnic Diversity: White, Black, Asian, 102,134 Hispanic, Mix Lifestyle & Media Traits • Shop at BYs Wholesale Club • Go to professional basketball games • Read People en Espanol • Watch Spanish language television • Acura ZDX Social Groups PrizmNE Social Groups are based on urbanicity and affluence, two important variables used in the production of Prizms ,T. First, segments are placed in one of four urbanicity categories (Urban, Second Cities, Suburbs, Town and Rural). Urbanicity is determined by the population density of an area and its neighboring areas. A population density score, ranging from one (low density) to 99 (high density), is assigned to each area. 1 /urko IYda l 'hururh n.eli�a ,uiJ 141e.m'10 IIIu/ V1.1 Finally, within each category, all the segments are sorted into groups based on affluence, another powerful demographic pre- dictor of consumer behavior. All of the 66 segments are grouped into these 14 Social Groups. The top four Social Groups, for a 30 -mile drive from the Bal- boa Village Theatre, are as follows: Prizm., Market Segmentation Balboa Village Theatre 30 -Mile Drive Social Groups Social Group #of Households %Composition Urban Uptown 788,239 51.8% Urban Cores 196,397 129% Midtown Mix 174,348 11.51% Elite Suburbs 168,438 11.1% The Affluentials 102,134 6.7% Middleburbs 35,260 2.3% Second City Society 19,578 1.3% Landed Gentry 14,704 LD% Inner Suburbs 12,170 0.8% City Centers 8,88D 0.6% Micro -City Blues 1,740 0.1% Country Comfort 389 0.000 Middle America 101 0.0% Rustic Living 17 0.00/6 Total % of Population 300.0% Page 19 11affi ¢r I Wag, Moore- (In a! \enlroly Reach ( 1 Urban Uptown (51.8"/x) The five segments in Urban Uptown are home to the nation's wealthiest ur- ban consumers. Members of this social group tend to be midscale to upscale, college educated and ethnically di- verse, with above - average concentra- tions of Asian and Hispanic Ameri- cans. Although this group is diverse in terms of housing styles and family sizes, residents share an up- scale urban perspective that's reflected in their marketplace choices. Urban Uptown consumers tend to frequent the arts, shop at exclusive retailers, drive luxury imports, travel abroad, and spend heavily on computer and wireless technology. 2013 Statistics: US Households: 10,456,630 Median HH Income: $66,204 Segments include: Young Digerati, Money & Brains, Bohe- mian Mix, The Cosmopolitans, and American Dreams. Urban Cores (12.9 %) :IO�L.f• �- The segments of Urban Cores are char- acterized by relatively modest incomes, educations and rental apartments, but affordable housing is part of the allure tlarket .lrea ('harm r, i IvRCa and l.de.c(r /c lualrea for the group's young singles and aging retirees. One of the least affluent social groups, Urban Cores has a high concentra- tion of Hispanics and African - Americans and surveys indicate a fondness for both ethnic and mainstream media and products. Among the group's preferences: TV news and daytime pro- gramming, Spanish and African- American radio, telephony services and pagers, cheap fast food and high -end department stores. 2013 Statistics: US Households: 6,158,991 Median HH Income: $28,851 Segments include: Urban Elders, City Roots, Big City Blues, and Low -Rise Living. Midtown Mix (11.5 %) Diversity is the hallmark of Midtown Mix, a group of mostly lower- middle- income urban segments. It's the most ethnically diverse social group, and consists of a mix of singles and couples, homeowners and renters, college alumni and high school graduates. In Midtown Mix, the households are dominated by consumers who pursue active social lives -- frequenting bars, health clubs, and restaurants at high rates -- listen to progressive music, drive small imports, and acquire the latest consumer electronics. Page 20 Uull+ou IVlot:c Il+rrere f'in u/ \euymrlReach. ('I 2013 Statistics: US Households: 5,455,I30 Median HH Income: $37,777 Segments include: Urban Achievers, Close -In Couples, and Mutli -Culti Mosaic. Elite Suburbs (11.1 %) IicJ� l • The most affluent suburban social group, Elite Suburbs is a world of six - figure incomes, post - graduate degrees, single - family homes and managerial and professional occupations. The segments here are predominantly white with significant concentrations of well- off Asian- Americans. Befitting their lofty salaries, Elite Suburbs members are big consumers of large homes, expensive clothes, luxury cars and foreign travel. Despite representing a small portion of the U.S. population, they hold a large share of the nation's personal net worth. 2013 Statistics: US Households: 5,934,984 Median HH Income: $107,190 Segments include: Upper Crust, Blue Blood Estates, Movers & Shakers, and Winner's Circle. Page 21 I lurket . rreu Chant, Ierrslh .% ,eal Westrle l Pm1Y%D Lifestage Groups Prizmw.. Lifestage Groups are based on the age of each seg- ment's residents and the presence of children, two powerful predictors of consumer behavior. There are three classes, which include: Younger Years, Family Life and Mature Years. Within each class, all the segments are sorted into groups based on affluence, another powerful demographic predictor of con- sumer behavior. What the three Lifestage Groups that com- prise "Younger Years" share is that all of these households are, for the most part, young and childless. The top Lifestage Groups for a 30 -mile drive from the Balboa Village Theatre are as follows: PriZMNr Market Segmentation Balboa Village Theatre 30 -Mile Drive Lifestage Groups Lifestage Group # of Households % Composition Affluent Empty Nests 354,414 23.3% Young Achievers 328,885 21.6% Young Accumulators 207,286 13.6% Conservative Classics 132,193 8.7% Sustaining Families 119,909 7.9% Midlife Success 107,316 7.1% Sustaining Seniors 77,856 5.1% Accumulated Wealth 75,442 5.0% Mainstream Families 61,221 4.0% Cautious Couples 50,327 3.3% Striving Singles 7,546 0.5% Total % of Population 100.0% /4(116["! I'Watze 1 he, upV - ('in of k Iporl Nad) (.I Affluent Empty Nests (23.3 %) .a While those on the "MTV side" of 50 may debate their inclusion in this group, Americans in the Mature Years tend to be over 45 years old and living in houses that have empty- nested. The four wealthiest segments in this group are classified Affluent Empty Nests, and they feature upscale cou- ples who are college educated, hold executive and professional positions and are over 45. While their neighborhoods are found across a variety of landscapes- -from urban to small -town areas —they all share a propensity for living in large, older homes. With their children out of the house, these consumers have plenty of disposable cash to finance active lifestyles rich in travel, cultural events, exercise equipment, and business me- dia. These folks are also community activists who write politi- cians, volunteer for environmental groups, and vote regularly in elections. 2013 Statistics: US Households: 8,421,165 Median HH Income: $86,555 Segments include: Upper Crust, Money & Brains, Big Fish, Small Pond, and Second City Elite. Young Achievers (21.6 %) llarktq l.q:.VI0e Inalk IN Young, hip singles are the prime resi- dents of Young Achievers, a lifestage group of twentysomethings who've recently settled in metro neighbor- hoods. Their incomes range from working -class to well- to -do, but most residents are still renting apartments in cities or close -in suburbs. These seven segments contain a high percentage of Asian singles, and there's a decidedly progressive sensibility in their tastes as re- flected in the group's liberal politics, alternative music, and lively nightlife. Young Achiever segments are twice as likely as the general population to include college students living in Page 22 group quarters. 2013 Statistics: US Households: 12,293,349 Median Household Income: $50,633 Segments include: Young Digerati, Bohemian Mix, Young In- fluentials, Greenbelt Sports, Up- and - Comers, Urban Achievers and Boomtown Singles. Halhmw 1'Max, 171caa'r 0n .01 \of po-I Ile, ah t'.I Young Accumulators (13.6 %) Compared to the Accumulated Wealth group, the five segments in Young Ac- cumulators are slightly younger and less affluent than their upscale peers. Ethnically diverse, these households include an above - average number of Hispanic and Asian Americans. Adults typically have college educations and work a mix of white - collar managerial and professional jobs. Found mostly in sub- urban and exurban areas, the large families in Young Accumu- lators have fashioned comfortable, upscale lifestyles in their mid -sized homes. They favor outdoor sports, kid - friendly technology and adult toys like campers, powerboats and mo- torcycles. Their media tastes lean towards cable networks tar- geted to children and teenagers. 2013 Statistics: US Households: 9,848,422 Median HH Income: $69,944 Segments include: Upward Bound, Beltway Boomers, Kids & Cul -de -sacs, Fast -Track Families, and American Dreams. Page 23 Varkrl.Inv ('lulrarlCl7Slit:, and 1. eN4-le Ina(cria Appendix F: Programming Survey Report Programming Survey In November /December 2013, AMS administered an online programming survey to the target market for the Balboa Village Theatre, which was identified as a 30 -mile drive area from the venue. The intent was to understand the potential level and types of programming, pricing, and membership options for the renovated venue. The programming survey was administered using a market research panel in order to capture a statistically relevant random sample of the market. The survey report follows. Balboa Performing Arts Theatre Foundation Page F -1 April 2014 Balboa Village Theatre Business Implementation Plan © 2014 AMS Planning & Research Corp for the Arts and Entertainment Industries BALBOA VILLAGE THEATRE Primary Market Area Survey Report February 5, 2014 Methodology Survey Purpose As a part of the second phase of work for the Balboa Village Theatre, AMS Planning & Research Corp. undertook primary research to gain insight into the potential level and types programming, pricing and membership options for a renovated Balboa Village Theatre. Survey Method An online survey was created to capture data related to five topic modules: Interest Motivation Participation Content Pricing Membership Methodology Survey Administration A research panel was utilized to provide a statistically - reliable survey sample of the suggested primary market area, a 30 -mile drive from the Balboa Village Theatre. The research panel was screened based upon living in a Zip Code that fell within the 30 -mile drive area, as well as being 18 years of age or older. Survey Population A total of 2,263 survey responses were recorded. The estimated number of households existing in the Zip Codes located within a 30 -mile drive area of the Balboa Village Theatre is 1,757,000, at a 95% confidence level, the confidence interval of the survey results (also known as margin of error) is ±2.06 %. Research Questions • Interest • What type(s) of live music concerts and film screenings are individuals most interested in? • What type(s) of educational activities are individuals or someone in their immediate household most interested in? • Motivations What factors drive an individual's decision to attend live music concerts, film screenings and educational activities in general? • How do individuals hear about live music concerts and film screenings in general? Participation How frequently do individuals attend live music concerts and film screenings in general? What is the level of awareness of the Balboa Village Theatre? How likely are individuals to attend concert, film or educational programming at the Balboa Village Theatre? What genres of live music concerts, film screenings and educational activities do individuals want to attend at the Balboa Village Theatre? Research Questions Pricing What ticket prices do individuals currently pay for programming they attend? What ticket prices are individuals willing /expecting to pay for programming at the Balboa Village Theatre? Membership • Are individuals currently members of other arts, entertainment or cultural organizations? • What benefits are most valued by potential members? What benefits are the least valued? How much do individuals currently pay for their membership? �w Key Observations Featured performer(s) /group(s) is the most influential attribute in the decision to attend a live music concert, while date and time of the film is the most influential in the decision to attend a film screening. Word of mouth is the most common information source that respondents learn about live music concerts and /or film screenings through. For live music concerts, respondents attend slightly less on an annual basis than they do film screenings, however, they indicated that they are willing to travel twice the distance to attend a live music concert when compared to a film screening. Most respondents who last attended a live music concert attended a classic rock or a popular music/Top 40 concert; those who last attended a film screening indicated that they saw a contemporary/first run film. Most respondents indicated that the last live music concert that they attended was at a large scale arena, which should be taken into account when trying to attract them to a smaller music venue such as the Balboa Village Theatre. Similarly, most respondents indicated that the last film screening they attended was at a local movie theatre run by a large corporation, which again should be taken into account when looking to attract them to a multi -use facility to attend a film screening. Key Observations Those who had heard about the Balboa Village Theatre prior to taking the survey were almost unanimous in their support for a renovation. Classic rock and popular music /Top 40 were the types of live music concerts that most, who favored the renovation, indicated that they were at least "somewhat likely" to attend, which mirrors overall interest by all respondents at least "somewhat interested" in attending live music concerts in general. Contemporary /first run films and independent films were the types of film screenings that most, who favored the renovation, indicated that they were at least "somewhat likely" to attend, again mirroring overall interest by all respondents at least "somewhat interested" in attending film screenings in general. Workshops and instructional classes for adults, as well as lectures, were the educational activities that most, who favored the renovation, indicated that they were at least "somewhat likely" to attend. The median amount that respondents who were at least "somewhat likely' to attend a live music concert or a film screening at a renovated Balboa Village Theatre wanted to pay was $40 for a live music concert and $15 for a film screening. Key Observations • The membership benefits most commonly received by those who indicated that they currently have a membership to an arts, entertainment or cultural organization were priority access to advance purchase of tickets, access to membership -only events and reduced admission /ticket prices. • Reduced admission /ticket prices, parking benefits and priority access to advance ticket purchases were the most important benefits to those who currently receive these benefits as a part of their membership to an arts, entertainment or cultural organization. • The median annual membership amount paid by those who currently have a membership to an arts, entertainment or cultural organization is $100. TEAR5 for the Arts and Entertainment Industries INTEREST What type(s) of live music concerts and film screenings are individuals most interested in? What type(s) of educational activities are individuals or someone in their immediate household most interested in? 81.1 % of respondents were at least somewhat interested in attending live music concerts and 76.5% of respondents were at least somewhat interested in attending film screenings. How interested are you in the following activities? Attending live music concerts (n= 2,241) Attending film screenings (n= 2,228) Attending theatre or dance performances (n= 2,222) Attending youth or children's performances (n= 2,210) 0% 20% i 40% 60°%a i 80% 100% ® Extremely interested . Very interested Somewhat interested Not very interested n Not at all interested Classic rock (mean ranking of 1.72) and popular music/Top 40 (mean ranking of 1.77) were the types of live music concerts that respondents who were at least "somewhat interested" in attending live music concerts indicated that they most enjoy. Using the numbers one (1) to three (3), with one being the type of live music concert you enjoy attending the most, please rank the genres of live music concerts that you most like attending. Mean rank by item Classic Rock (n =838) Popular /Top40 (rw845) Other music concert (n =197) Classical (n =457) Bluegrass, folk, or country (n =411) Indie Rock (n=199) Jazz (n =390) Alternative (n =338) R & 8 (n =320) Urban /Electronic (n -124) Adult contemporary (n =384) World Music (n =117) Singer /Songwriter (n =409) Latin (n =102) Family - focused music (n =133) 0 1 2 3 1.72 1.77 1.83 1. it 1.92 1.92 1,94 .98 2.03 2.07 2.11 2.14 2.15 2.17 2.19 0 1 2 3 Of those who were at least somewhat interested in attending film screenings, contemporary/first run films (mean ranking of 1.63) and independent films (mean ranking of 1.94) were the types of film screenings that respondents indicated that they enjoy attending the most. Using the numbers one (1) to three (3), with one being the type of film screening you enjoy attending the most, please rank the genres of film screenings that you most like attending. Mean rank by item Contemporary/first -wn films (n= 1,124) Independent films (n= 1,087) Otherfilm screening (n =101) Classicfilms (n =988) Films for the whole family (n =676) Children'sflms (n =280) Foreign films (n =571) 0 1 2 3 For educational activities for children, respondents indicated that someone in their immediate family was interested in acting classes (10.2 %) and musical theatre classes (9.8 %). Please indicate what type(s) of educational activities (if any) you or someone else in your immediate family are interested in. Please check all that apply. Activities for children. (n= 2,263) Acting Musical Theatre Traditional Dance (Ballet, Jazz, Tap, etc) Visual Art(Palntirg Sculpting Crafts, etc) Contemporary Dance (Hlp -hop, Stepping Modern, etc) Film /Animation Vocal Technique Technical Theatre Other Aerobic Dance (Zumba, etc.) Yoga/Tal Chi For educational activities for adults, Yoga/tai chi classes (30.0°/x), visual art classes (24.0 %) and aerobic dance classes (21.5°/x) were the educational activities that respondents indicated that they were interested in (or had someone in their immediate family who was interested). Please indicate what type(s) of educational activities (if any) you or someone else in your immediate family are interested in. Please check all that apply. Activities for adults. (n= 2,263) Yoga/rat Chi Visual Art (Painting. Sculpting Crafts, etc) Aerobic Dance (Zumba, eta) Film /Aamation Musical Theatre Traditional Dance (Ballet, Jazz, Tap, etc) Contemporary Dance (Hip-hop, Stepping Modern, etc) Acting Vocal Technique Technical Theatre Other 096 20% 40% 60% 80% 10096 �-q 1 L.- - -. _l 096 20% 40% 60% 80% 10096 YFAP5 r i for the Arts and Entertainment ndustries MOTIVATIONS What factors drive an individual's decision to attend live music concerts, film screenings and educational activities in general? How do individuals hear about live music concerts and film screenings in general? Featured performers /groups (70.7 %), content of the concert (63.3 %) and date and time of the concert (42.5 %) were the three factors that had the most influence on a respondents decision to attend a live music concert most recently. What role did the following factors play in influencing your decision to attend a live music concert most recently? Featured performers /groups (n= 1,025) Content being offered (n= 1,025) Date and time of the activity (n= 1,027) Ticket availability (n= 1,032) Ease of getting to the venue where the activity was held (n= 1,030) Cost of admission /ticket price (n= 1,023) Easy access to parking (n= 1,025) Previous experience at the particular venue where the activity is held (n= 1,003) Opportunities for social time with friends and family (n= 1,020) Free parking (n =LOD7) Recommendation from a friend or family member (n= 1,017) Someone invited me (n =997) My impression of the neighborhood where the venue is located (n= 1,027) Able to purchase last- minute tickets (n =996) Review of the activity (newspaper, online, etc.) (n= 1,011) Advertising (print, online, etc.) (n =L003) Y.�lri�rY:� � •.. Ls •. r r:3 a A great deal of influence Some influence : Noopinion either way • Very little Influence ra Nolnfluence at all Date and time of the film screening (51.9 %), content of the film (49.9 %) and the availability of free parking (41.7 %) were the top three motivating factors for respondents who most recently attended a film screening. What role did the following factors play in influencing your decision to attend a film screening most recently? Date and time of the activity (n =449) Content being offered (n=451) Free parking (n =453) Ease of getting to the venue where the activity was held (n =455) Easy access to parking (n =454) Featured performers/groups (n=441) Ticket availability (n=455) Cost of admission/tIcket price (n =447) My impression of the neighborhood where the venue is located (n =454) Previous experience at the particular venue where the activity is held (n =447) Able to purchase last - minute tickets (n =441) Someone invited me (n=445) Opportunities for social time with friends and family (n =451) Recommendation from a friend or family member (n =447) Review of the activity (newspaper, online, etc.) (n =450) Advertising (print, online, etc.) (n=445) 0% 20% 40% EO% 80% 100% ■ A great deal of Influence a Some Influence a No opinion either way a Very little influence ■ No Influence at all For educational offerings by the Newport Beach Department of Recreation & Senior Services, the date and time of the activity and content of the activity influenced decision to participate in activities for both adults and children. What factor(s) led to you or someone else in your immediate family attending an educational activity through the Newport Beach Department of Recreation & Senior Services? (n =91) Date and time of the activity Content (type of educational activity) being offered Ease of getting to the venue where the activity was held Cost of enrollment Opportunity to learn about something new Easy access to parking M/ Impression of the neighborhood where the activity Is located Recommendation from a friend or family member The Instructor Someone Invited me to)oin them Previous experience at the particularvenue where the acavlty Is held Review of the acavlty (newspaper, online, etc) Advertising (print, online, etc) Opportunity to provide my child(ren) with an educational experience 036 20% 40% 60% 80% 10096 ■Acilvltlesfor adults Ativltlesfor children Word of mouth was the most common way that those who most recently attended a live music concert or film screening most recently heard about the activity they attended. Newspaper and television were also important sources of information for those who indicated that they last attended a film screening. How did you hear about the activity you last attended? Word of mouth Radio Email blasts Newspapers Social networking messages and postings Other online event calendars Other Brochure from the organization TV Arts and cultural organization websites Magazines Postcards / newsletters received in the mail Outdoor advertising (Billboards, transit posters, etc.) Twitter ( "Tweets ") 0% 20% 40% 60% 80% ■ live music concerts (n= 1,334) in Film screenings (n=632) f6Zi;:1 eE L R S for the Ads and Entertoinmenl Industries PARTICIPATION How frequently do individuals attend live music concerts and film screenings in general? What is the level of awareness of the Balboa Village Theatre? How likely are individuals to attend concert, film or educational programming at the Balboa Village Theatre? What genres of live music concerts, film screenings and educational activities do individuals want to attend at the Balboa Village Theatre? For live music concerts, respondents indicated that on average they attend about three concerts per year and are willing to drive just over an hour to get to the concert For film screenings, respondent indicated that on average they attend about four screenings per year and are willing to drive just over half an hour to get to the film screening. Live music concerts Film screenings N 1,813 1,699 Mean 3.37 4.28 Median 2 2 Minimum 0 0 Maximum 60 100 I In general, how far are you willing to travel to attend the following activities? Live music concerts Film screenings N 1,807 1,681 Mean 67.14 miles 35.75 miles Median 30 miles 20 miles Minimum 0 miles 0 miles Maximum 6,000 miles 5,000 miles A majority of respondents indicated that they last attended a live music concert (67.9 %), as opposed to a film screening, with classic rock and popular musici-Fop 40 being the most commonly attended music genre. For film screenings, contemporary/first run films by far was the most commonly attended genre. What was the last type of activity that you attended? (n= 1,966) Filr�s,�ee'1,1 3,.z Specifically, what type of activity did you attend? Live music concerts (n= 1,334) ClasucR k PWuW /TWQ OthrmWC<an<m Claw "I Bluegr...ltlk. or country Ln9e� /SOn&wnter anernaav< llzz R &B Aollt<on[emparry Ingle Rak Famllµfocuwd mN c Wold WV, LaM UrWn/i4NMlt 0% 20% nn BB% st% tome muslcconwt 6].9% Specifically, what type of activity did you attend? Film screenings (n =632) Cmt< orery /l�mt — nuns mdep<rbentfi m Rms /dtkewlnk /amYy classicflms Chlldrendnlms fIX<911 nk115 otlermme«emB o% cote o% sox &B% wwe The Honda Center in Anaheim (37.1 %) and the Staples Center in Los Angeles (34.0 %) were the most common venues where respondents who last attended a live music concert saw the performance. At what venue did you last attend the following activity? A live music concert (n =291) Honda Center - Anaheim Staples Center - Los Angeles Verizon Wireless Amphitheater - Irvine Hollywood Bowl Segerstrom Center for the Arts The Greek Theatre Cerritos Center for the Performing Arts Pacific Amphitheatre OC Fair & Event Center Nokia Theatre L.A. Live 0% 20% 40% 60% 80% 100% Local movie theatres run byAMC (15.0°/x) and Regal Cinemas (10.9 %) were the most commonly reported theatres last attended by those who indicated that they had last attended a film screening. At what venue did you last attend the following activity? A film screening (n =193) Unspecified AMC Theatre Unspecified Regal Cinema Edwards Theatres - Irvine Spectrum Unspecified Edwards Theatre AMC Theatres - Orange Unspecified Theatre In Los Angeles Unspecified Theatre in Hollywood AMC Theatres - Downtown Disney Edwards Theatres - Long Beach Towne Center Unspecified ArcUghtClnema 0% 20% 40% 60% M 10096 71 Only 4.1 % of respondents indicated that they had participated personally or had someone in their immediate family participate in an educational activity offered through the Newport Beach Department of Recreation & Senior Services. Have you or someone in your immediate family ever participated in an educational activity through the Newport Beach Department of Recreation & Senior Services? (n= 2,194) Yes 1---aivo No—,-� 95.9% Of the 18.8% of respondents who had had heard of the Balboa Village Theatre before taking the survey, 92.8% were in favor of a renovation. There is a large percentage of the market that is currently unaware of the venue. Before taking this survey, had you heard of the Balboa Village Theatre? (n= 1,908) Nom, el.zss �Y�, ,Rump* 18.895 Do you favor a renovation of the Balboa Village Theatre? (n= 1,966) Don't know 50.5% 6.5% Do you favor a renovation of the Balboa Village Theatre? Those who had heard of the Balboa Village Theatre previously (n =265) Y,; No 7.7% Forthose who indicated they were in favor of a renovation to the Balboa Theatre, 71.5% were at least somewhat likely to attend a classic rock concert, 68.6% were at least somewhat likely to attend a popular music/Top 40 concert and 67.7% were at least somewhat likely to attend a singer /songwriter concert at a renovated Balboa Village Theatre. How likely would it be for you to attend the following activities at a renovated Balboa Village Theatre? Live music concerts Classic Rock (n =773) Popular /Top40 (n=717) Singer /Songwriter (n =696) Bluegrass, folk, or country (n =691) Adult contemporary (n -696) Classical (n =703) Jazz (n =701) R & B (n =698) Alternative (n =677) Other music concert (n =239) India Rock (n =681) Family - focused music (n =672) Latin (n =683) World Music (n =673) Urban /Electronic (n =669) 096 2096 40% 60% 80% 100% ■Very likely _i Somewhat likely a No opinion either way 6 Not vary likely 9 Not at all likely For those who indicated they were in favor of a renovation to the Balboa Theatre, 74.5% were somewhat likely to attend a screening of a contemporary/first run film, 72.8% were at least somewhat likely to attend a screening of an independent film and 74.6% were at least somewhat likely to attend a screening of a classic film. How likely would it be for you to attend the following activities at a renovated Balboa Village Theatre? Film Screenings Contemporary/first -run films (n =711) Independentfilms (n =727) Classicfilms (n =724) Foreign films (n =712) FlImsfor the whole family (n=682) Children's films (n =674) Otherfilm screening (n =238) 0% 20% 40% 60% 80% 10096 ■ Very likely a Somewhat likely 41 No opinion either way o Not very likely ■ Not at all likely For those who indicated they were in favor of a renovation to the Balboa Theatre, 47.5% were somewhat likely to attend instructional classes for adults, 47.2% were somewhat likely to attend lectures and 48.8% were some what likely to attend workshops for adults. How likely would it be for you to attend the following activities at a renovated Balboa Village Theatre? Educational activities Instructionalclasses for adults (n =688) Lectures (n =691) Workshopsfor adults (n =693) Workshops for children (n =646) Instructional classes for children (n =632) 0% 20% 4096 60% 80% 100% is Very likely Somewhat likely No opinion either way Not very likely is Not at all likely Y F A A 5 r- 1 for the Arts and Entertainment Industries PRICING What ticket prices do individuals currently pay for programming they attend? What ticket prices are individuals willing /expecting to pay for programming at the Balboa Village Theatre? Popular music/Top 40, classic rock and singer songwriter music concerts commanded the highest median ticket price of all live music genres at $60. Family focused music concerts commanded the lowest median ticket price at $16. Genre N Mean Median Minimum Maximum Popular/Top 40 214 $82.82 $60.00 $0.00 $650.00 Urban /Electronic 18 $49.06 $35.00 $2.00 $200.00 Adult contemporary 47 $54.83 $50.00 $0.00 $200.00 Indie rock 38 $34.37 $27.50 $0.00 $150.00 Classic rock 260 $67.21 $60.00 $0.00 $250.00 Alternative 79 $55.77 $50.00 $0.00 $222.00 Singer /Songwriter 100 $78.17 $60.00 $0.00 $1,000.00 R & B 55 $53.29 $50.00 $0.00 $200.00 Bluegrass, folk, or 103 $70.06 $58.00 $0.00 $600.00 country Jazz 66 $84.12 $47.50 $0.00 $2,000.00 Latin 23 $50.61 $50.00 $0.00 $156.00 World music 26 $43.31 $35.00 $0.00 $150.00 Classical 122 $44.57 $30.00 $0.00 $300.00 Family- focused music 35 $22.97 $16.00 $0.00 $150.00 Other music concert 143 $50.24 $40.00 $0.00 $400.00 Foreign films commanded the highest median ticket price at $11.50. Classic films and independent films were next, with a median ticket price of $10. Genre N Mean Median Minimum Maximum Classic films 66 $23.23 $10.00 $0.00 $700.00 Independent films 90 $13.27 $10.00 $0.00 $300.00 Foreign films 34 $11.18 $11.50 $0.00 $35.00 Contemporary /first- 293 $8.79 $9.00 $0.00 $80.00 run films Children's films 39 $9.36 $7.00 $0.00 $110.00 Films for the whole 77 $8.64 $8.00 $0.00 $80.00 family Other film screening 30 $8.00 $4.50 $0.00 $50.00 Respondents who were in favor of a renovation to the Balboa Village Theatre and indicated they were at least "somewhat likely' to attend indicated that the median ticket price they expected to pay for a live music concert was $40 and $15 for a film screening. Genre N Mean Median Minimum Maximum Live music concert 740 $43.38 $40.00 $0.00 $250.00 Film screening 699 $16.70 $15.00 $0.00 $100.00 Lecture 333 $18.06 $15.00 $0.00 $110.00 Workshop for adults 343 $25.92 $20.00 $0.00 $200.00 Workshop for 154 $23.58 $20.00 $0.00 $200.00 children Instructional class for 331 $30.44 $25.00 $0.00 $450.00 adults Instructional class for 136 $25.66 $20.00 $0.00 $200.00 children Respondents who were in favor of a renovation to the Balboa Village Theatre and indicated they were at least "somewhat likely' to attend indicated that their most preferred method of purchasing a ticket/paying for admission was online. What is your preferred method to purchase a ticket /pay for admission to the activities that you are at least "somewhat likely" to attend at a renovated Balboa Village Theatre? Live music concert (n =735) Film screening (n =694) Workshop for adults (n =339) Lecture (n =329) Instructional class for adults (n =327) Workshop for children (n =153) Instructional class for children (n =135) ■ Onllne ■ Phone a In- person Mall / Y a R S for the Arts and Entertainment Industries MEMBERSHIP Are individuals currently members of other arts, entertainment or cultural organizations? What benefits are most valued by potential members? What benefits are the least valued? How much do individuals currently pay for their membership? 11.1 % of respondents indicated that they were a member of at least one arts, entertainment or cultural organization. Are you are currently a member of an arts, entertainment, or cultural organization? (n= 2,241) Yes 11.1% N 88.9% 9% _ Of the 11.1% of respondents who indicated they held at least one membership, 13.5% indicated that they supported Segerstrom Center for the Arts and 8.6% indicated that they supported the LA County Museum of Art. The median annual level of membership was reported at $100. Please indicate which organization(s)you supportthrough your membership. List up to three organizations. (n =245) Segerstrom Center for the Arts LA County Museum of Art (LACMA) Bowers Museum South Coast Repertory Center Theatre Group - Los Angeles LA Philharmonic Philharmonic Society of Orange County Festival of Arts and Pageant of the Masters- Laguna Beach Smithsonian Institution Long Beach Symphony Orchestra 0% 20% 40% 60% 00% 100% N Mean Median Minimum Maximum 235 $282.03 $100.00 $0.00 $10,000.00 Priority access to advance purchase of tickets (64.9 %), membership events (62.9 %) and reduced admission /ticket prices (57.7 %) were the most commonly reported benefits received by those who indicated that t they had at least one membership to an arts, entertainment or cultural organization. Which of the following benefits do you currently receive for your membership? Please check all that apply. (n =248) Priority access to purchase advance tickets Members -only events Reduced admission /ticket price Tax deduction Members -only newsletter Receptions before, during, or after an activity Artist meet - and - greet /backstage access opportunities Discounts to other local businesses Members -only performances Parking benefits Of the benefits currently received by those who have a membership, 83.8% who receive reduced admission/ticket prices indicated that it was at least somewhat important to them to have. Parking benefits (90.2°/x) and priority access to advance ticket purchases (83.6 %) were also at least somewhat important to those who currently receive these benefits. Of the benefits you currently receive for your membership, please indicate how important that benefit is to have. Reduced admisslonRicket price (rt =142) Parkingbenefits (n=51) Priority access to purchase advance tickets (n =159) Members -only performances (rr -65) Tax deduction (n =124) Artist meet - and- greet/backstage access opportunities (r-76) Members -only events (r F152) Receptions before, during or after an activity (n=92) Members -only newsletter (rF100) Discounts to other local businesses (rt =75) 0% 20% 4096 6096 80% 10096 ■Verylmportant Somewhat Important Neutral n Notvery Important ■ Not Important at all w o� E Q c m S � � O w C W J UL O ry n z w 0 z O n U) W Respondent Key Demographics Age le =_1 Children Present in Household Education Race /Ethnicity Income 45 and over 67.2% Female 62.7% No 73.7% At Least College Degree 68.8% White (Non- Hispanic) 68.4% $100K or less 56.9% Map of Survey Respondents i h..:.:�•. �..�' l ] J Mr}I .<L•Y fl ; 1 � C�lm]9, 191 wlm mxa I,A 1:: '" ��a,.rs, muawsl la1 �xs,.9n mmxx nw ap OMTt ICM 19 WIaM.i lal '� Zip Code Frequencies 92708 Fountain Valley 61 92646 Huntington Beach 53 92677 Laguna Niguel 49 92630 Lake Forest 46 92648 Huntington Beach 43 92656 Aliso Viejo 38 92626 Costa Mesa 35 92683 Westminster 35 92692 Mission Viejo 35 92647 Huntington Beach 34 92886 Yorba Linda 34 92688 Rancho Santa Margarita 32 92691 Mission Viejo 31 90802 Long Beach 30 90808 Long Beach 30 92604 Irvine 30 90630 Cypress 28 90275 Rancho Palos Verdes 27 91765 Diamond Bar 27 92660 Newport Beach 27 90703 Cerritos 26 90803 Long Beach 26 Zip Code Frequencies 92869 Orange 26 90740 Seal Beach 25 92672 San Clemente 25 92867 Orange 25 92612 Irvine 24 92637 Laguna Woods 24 92679 Trabuco Canyon 24 92804 Anaheim 24 92807 Anaheim 24 92821 Brea 24 90274 Palos Verdes Peninsula 23 90815 Long Beach 23 92780 Tustin 23 90650 Norwalk 22 90807 Long Beach 22 92649 Huntington Beach 22 92870 Placentia 22 90631 La Habra 21 90713 Lakewood 21 92627 Costa Mesa 21 92629 Dana Point 21 92882 Corona 21 Zip Code Frequencies 90732 San Pedro 20 90805 Long Beach 20 92705 Santa Ana 20 92835 Fullerton 20 90706 Bellflower 19 92833 Fullerton 19 90720 Los Alamitos 18 92620 Irvine 18 92653 Laguna Hills 18 90620 Buena Park 17 90731 San Pedro 17 91748 Rowland Heights 17 92603 Irvine 17 92673 San Clemente 17 92801 Anaheim 17 92840 Garden Grove 17 92880 Corona 17 90501 Torrance 16 90638 La Mirada 16 92675 San Juan Capistrano 16 92805 Anaheim 16 92841 Garden Grove 16 Zip Code Frequencies 91745 Hacienda Heights 15 92606 Irvine 15 92831 Fullerton 15 91744 La Puente 14 91789 Walnut 14 92614 Irvine 14 92782 Tustin 13 92802 Anaheim 13 92808 Anaheim 13 90241 Downey 12 90601 Whittier 12 90604 Whittier 12 90660 Pico Rivera 12 90804 Long Beach 12 90806 Long Beach 12 90814 Long Beach 12 92865 Orange 12 92868 Orange 12 90623 La Palma 11 92887 Yorba Linda 11 90605 Whittier 10 90745 Carson 10 Zip Code Frequencies 92663 Newport Beach 10 92694 Ladera Ranch 10 92704 Santa Ana 10 92806 Anaheim 10 90220 Compton 9 90280 South Gate 9 90602 Whittier 9 90621 Buena Park 9 90680 Stanton 9 90710 Harbor City 8 90712 Lakewood 8 92602 Irvine 8 92617 Irvine 8 92625 Corona del Mar 8 92651 Laguna Beach 8 92707 Santa Ana 8 92845 Garden Grove 8 92866 Orange 8 90603 Whittier 7 90606 Whittier 7 90717 Lomita 7 90746 Carson 7 Zip Code Frequencies 90813 Long Beach 7 92610 Foothill Ranch 7 92844 Garden Grove 7 90240 Downey 6 90701 Artesia 6 92618 Irvine 6 92657 Newport Coast 6 92843 Garden Grove 6 90248 Gardena 5 90810 Long Beach 5 92703 Santa Ana 5 92832 Fullerton 5 92861 Villa Park 5 90262 Lynwood 4 90502 Torrance 4 90744 Wilmington 4 92624 Capistrano Beach 4 92661 Newport Beach 4 92701 Santa Ana 4 92706 Santa Ana 4 90221 Compton 3 90242 Downey 3 Zip Code Frequencies ... #of Respondents 90670 Santa Fe Springs 3 90755 Signal Hill 3 92655 Midway City 3 90639 La Mirada 2 90715 Lakewood 2 90723 Paramount 2 92662 Newport Beach 2 90716 Hawaiian Gardens 1 90742 Sunset Beach 1 92823 Brea 1 Appendix G: Competitive Inventory Competitive Market In order to understand the competitive environment, AMS assembled relevant data on facilities in the Orange County market that serve a similar need as the Balboa Village Theatre. For purposes of the analysis, the market area was defined as a 30 -mile driving distance from the Balboa Theater. The venues and event spaces included in the analysis are those that compete for either potential patron dollars or for product (i.e. artists and performance groups). Table 1: Primary Competitors Primary Competitors Of the venues in the market that provide entertainment opportunities, eight were identified as the primary competitors for the Balboa Village Theatre when attracting patrons or artists to the venue. The following were chosen based on location, programming, and attendance by respondents of the public survey. Organization Location Distance Venue(s) Capacity Programming/Presenting Rental Events Other Regency Newport 2 miles Lido Theatre 622 seats Independent and foreign film; N/A Historic venue; Often Theatres Beach, CA Surf film series featured in movies and commercials; Dolby Sound; Partner with Newport Beach Film Festival; Ticket Prices $7.50- $10.50 The Port Corona Del 6 miles Port Theater 250 seats First -run film screenings Theater available Historic venue; Non - Theater Mar, CA for rental; conventional seating; Capacity up to Alcohol and gourmet food 200 guests available; Ticket Prices $12- 18; Packages at $65; VIP ticket option Balboa Performing Arts Theatre Foundation Page G -1 April 2014 Balboa Village Theatre Business Implementation Plan © 2014 AMS Planning & Research Corp. Organization Location Distance Venue(s) Capacity Programming /Presenting Rental Events Other Honda Center Anaheim, 19 miles Arena /Theater 18,900 seats Headline concerts; Sports; Arena is available Tickets available at box office CA arena; 7,000 Family events for rental; Fees or ticketmaster; Facility fee seats based on type, may be charged; Parking theater size, and available setup complxity of event Verizon Irvine, CA 18 miles Outdoor 16,000 Headline concerts; Pacific N/A Operated by Live Nation; Wireless Amphitheatre Symphony; Festivals Plans to close in 2017; Amphitheatre Potential new venue being considered in Irvine as a replacement Segerstrom Costa 9 miles Segerstrom 2,994 International Dance Series; 20 event spaces; Membership program; Center for Mesa, CA Hall Broadway Series; Curtain Call Exclusive Caterer; Volunteer program; the Arts Series; Special events Rates $400- Internship program; $6,000 /day +labor Education programs for Segerstrom 1,704 Concert Series; Jazz Club Concert Hall Series;; Cabaret Series; Special and equipment youth and adults; Valet events; Pacific Symphony; service available; Parking Philharmonic Society of garages located nearby Orange County; Pacific Choral Samueli 300 Concert Series; Jazz Club Theater Stadium; Series; Cabaret Series; Off 320 club Center Series; Family Series; style; 600 Special events; Pacific gen. Symphony; Philharmonic admission Society of Orange County; Pacific Choral Founders Hall 234 club Rental style; 269 concert style Studio 180 Education programs; meet & banquet; greets; rehearsals; rental 200 concert; 225 receptions Art Plaza 500 -2,000 Concerts; Performances Balboa Performing Arts Theatre Foundation Balboa Village Theatre Business Implemtation Plan page G -2 October 2014 © 2013 AMS Planning & Research Corp. Organization Location Distance Venue(s) Capacity Programming/Presenting Rental Events Other South Coast Costa 9 miles Segerstrom Stage 507 seats S -Play Season; Holiday Auditorium, lobby Volunteer program; Repertory Mesa, CA Production and terrace Education programs for Julianne Argyros 336 seats 4 -Play Season; 3 -Play Theater available for rent youth and adults; Parking Stage Theatre for Young garages located nearby; Audiences Discounted tickets for ages Nicholas Studio 94 seats Emerging theater 15 -26 companies; Student productions Laguna Laguna 13 miles Moulton Theatre 420 seats 6 -Play season; Special Venue available Educational programs for Playhouse Beach, CA performances; 3 -Play Youth for rental youth and adults; $4 Theater Series handling fee on phone and online orders; Parking in two lots nearby and one far lot with trolly service; OC Fair & Costa 6 miles Pacific Amphitheater 8,500 Summer concert series (°24 Exhibit halls, OC Fair runs for one month Event Center Mesa, CA seats headliners) meeting and in July /August; Ticket prices multipurpose $6-11; Box office only open The Hangar 1,150 Summer concert series (^27 seats concerts free with fair areas available for part-year; rickets also admission) rent; Rates $300- available through Action Sports Arena 5,750 Action entertainment $3,950+ labor ticketmaster; Parking and seats (rodeo; monster truck; and equipment VIP parking available motocross, demo derby, etc) The Santa Ana, 10 miles Mainstage 971 seats Concerts 6 -7 nights per Venue available Tickets $5 -$35; Tickets Observatory CA week; Rock; Indie -rock for performances, available at box office or Constallation Room 250 seats social events, and through ricketweb; $2 film shooting service charge on credit card purchases; Onsite parking free but limited, a pay lot is located nearby; The Coach San Juan 28 miles Coach House Theater 480 seats Concerts 3 -4 nights per Venue available Historic venue: Dinner House Capistrano, week; Variety of touring for rental available during CA bands, tribute acts, local performances bands Balboa Performing Arts Theatre Foundation Page G -3 April 2014 Balboa Village Theatre Business Implementation Plan © 2014 AMS Planning & Research Corp. Secondary Competitors Within the 30 -mile drive distance, AMS identified: • 14 Arena, amphitheater, or event center venues • 14 Auditoriums, concert halls • 18 College, University venues • 11 Restaurants, bars with live music • 14 Nightclubs or lounges with ticketed events • 29 Movie or film theaters • 8 Museums • 20 Producing theatres (community and professional) • 2 Major theme parks These venues and organizations offer entertainment in the form of live concerts, performing arts, orfilm, which will also vie for a potential patron's entertainment dollar. Venues that present live music or performing arts may also be competing for similar artists The Balboa Theater will need to take into account the secondary competitors when developing its programming niche in the market. Balboa Performing Arts Theatre Foundation Balboa Village Theatre Business Implementation Plan Table 2: Secondary Competitors: Movie Theaters /Cinemas Venue Name Location Distance Cinema Regency Theatres - Lido Theater Newport Beach 2 mi. Triangle Square Cinemas Costa Mesa 4 mi. Edwards Theaters Big Newport 6 Newport Beach 6 mi. Island Cinema 7 Newport Beach 7 mi. Edwards Metro Pointe Stadium 12 Costa Mesa 9 mi. Regency South Coast Village Santa Ana 9 mi. Regency Charter Centre Cinemas Huntington Beach 11 mi. Edwards University Town Center 6 Irvine 11 mi. AMC Tustin 14 Tustin 12 mi. Edwards Westpark 8 Irvine 13 mi. Woodbridge Movies 5 Irvine 13 mi. Century Huntington Beach Huntington Beach 15 mi. Metropolitan Fiesta Twin Santa Ana 15 mi. Edwards Market Place Stadium 10 Irvine 16 mi. Picture Show at Mainplace Santa Ana 16 mi. Edwards Irvine Spectrum 21 Irvine 17 mi. Regency Westminster 10 Westminster 17 mi. UA Long Beach 6 Long Beach 17 mi. AMC Marina Pacifica 12 Long Beach 17 mi. AMC Orange 30 Orange 18 mi. Regal Cinemas Garden Grove Stadium 16 Garden Grove 18 mi. Cinemark Century Stadium 25 Orange 19 mi. Edwards Theaters Aliso Viejo 20 Aliso Viejo 19 mi. 4 Star Cinemas Garden Grove 20 mi. AMC Downtown Disney Anaheim 21 mi. Art Theatre of Long Beach Long Beach 21 mi. Regal Foothill Towne Center Stadium 22 Foothill Ranch 23 mi. Krikorian Premier Theatres San Clemente 24 mi. Regency Theatres Director's Cut Cinema Laguna Niguel 27 mi. Page G -4 April 2014 O 2014 AMS Planning & Research Corp. Table 3: Secondary Competitors: Live Music Venues Venue Name Location Seats Distance Music Venues: Restaurants /Bars Balboa Bay Club & Resort Newport Beach Gen. 0 mi. The Village Inn Newport Beach Gen. 1 mi. The Blue Beet Newport Beach Gen. 2 mi. Sol Grill Newport Beach Gen. 2 mi. La Cave Underground Lounge Costa Mesa Gen. 5 mi. Muldoon's Irish Pub and Grill Newport Beach Gen. 6 mi. Marine Room Laguna Beach Gen. 13 mi. Don the Beachcomber Huntington Beach Gen. 14 mi. Pelican Isle Huntington Beach Gen. 14 r i Original Mike's Santa Anna Gen. 15 mi. OC Tavern Concert Hall San Clemente 250 21 ml. Music Venues: Clubs Detroit Bar Costa Mesa 350 3 mi. Sutra Lounge Costa Mesa 350 4 mi. Atomic Ballroom Irvine 300 8 mi. The Improv Irvine 400 8 mi. The Observatory Santa Ana 971 10 mi. The Observatory Constellation Room Santa Anna 300 10 mi. City National Grove of Anaheim Anaheim 1,700 15 mi. House of Blues Anaheim 1,100 15 mi. Yost Theater Santa Anna 1,000 15 mi. The Improv Brea 400 21 mi. Chain Reaction Anaheim 240 22 mi. Marquee 15 Corona 300 27 mi. The Coach House San Juan Capistrano 480 28 mi. Venue Name Location Seats Distance Music Venues: Amphitheater /Outdoor Festival Grounds Hyatt Regency Newport Beach Amphitheater Newport Beach 1,100 0 mi. OC Fair & Event Center - Action Sports Arena Costa Mesa 5,750 6 mi. OC Fair & Event Center - Pacific Amphitheater Costa Mesa 8,500 6 mi. OC Fair & Event Center -The Hangar Costa Mesa 1,150 6 mi. Oak Canyon Ranch Irvine 4,000 8 mi. Doheny State Beach Dana Point 6,000 16 mi. Verizon Wireless Amphitheater Irvine 16,000 18 mi. Orange County Great Park Irvine N/A 22 mi. Fender Museum of Music & Arts Corona 1,000 27 mi. Long Beach Convention Center- Rainbow Lagoon Park Long Beach N/A 22 mi. Lake Mission Viejo Mission Viejo 10,000 25 mi. Queen Mary Events Park Long Beach 7,000 23 mi. Music Venues: Arena Honda Center Anaheim 19,400 15 mi. Long Beach Convention & Entertainment Center- Long Beach Arena Long Beach 13,500 22 mi. Balboa Performing Arts Theatre Foundation page G -5 October 2014 Balboa Village Theatre Business Implemtation Plan 0 2013 AMS Planning & Research Corp. Table 4: Secondary Competitors: Live Performance Venues Venue Name Location Seats Distance Professional Theaters Shakespeare Orange County- Euclid Park Festival Amphitheater Garden Grove 348 21 mi. The Chance Theater Anaheim 49 23 mi. South Coast Repertory- Segerstrom Stage Costa Mesa 507 9 mi. South Coast Repertory- Julianne Argyros Stage Costa Mesa 335 9 mi. South Coast Repertory- Nicholas Studio Costa Mesa 94 9 mi. Irvine Barclay Theatre Irvine 756 it mi. Laguna Playhouse Laguna Beach 420 13 mi. Community Theaters Santa Ana 900 15 mi. Newport Theatre Arts Center Newport Beach 90 3 mi. Costa Mesa Civic Playhouse Costa Mesa 73 5 mi. Huntington Beach Playhouse Huntington Beach 317 6 mi. Huntington Beach Playhouse- Central Library Huntington Beach 317 11 mi. Musical Theatre Village Irvine 99 15 mi. Westminster Community Theatre Westminster 122 15 mi. Rose Center Theater Westminster 419 16 mi. Village Theatre Arts Orange 285 18 mi. The Gallery Theater Anaheim 50 23 mi. Maverick Theater Fullerton 48 25 mi. STAGES Theater Fullerton 50 27 mi. Cultural Centers Merage Jewish Community Center of Orange County Irvine N/A 10 mi. Muckenthaler Cultural Center Fullerton 246 22 mi. Venue Name Location Seats Distance Auditorium /Concert Hall Segerstrom Center for the Arts - Segerstrom Concert Hall Costa Mesa 1,704 9 mi. Segerstrom Center for the Arts - Samueli Theater Costa Mesa 600 9 mi. Segerstrom Center - Segerstrom Hall Costa Mesa 2,994 9 mi. Segerstrom Center - Founders Hall Costa Mesa 269 9 mi. Segerstrom Center - Studio Costa Mesa 200 9 mi. Segerstrom Center -Arts Plaza Costa Mesa 2,000 9 mi. Calvary Church Santa Ana 2,700 14 mi. Yost Theater Santa Ana 900 15 mi. Orange County Pavilion Santa Anna 500 16 mi. Long Beach Convention & Entertainment Center- Center Theater Long Beach 825 19 mi. Long Beach Convention & Entertainment Center- Terrace Theater Long Beach 3,051 19 mi. Cerritos Center for the Performing Arts Cerritos 1,800 20 mi. La Mirada Theatre for Performing Arts La Mirada 1,251 21 mi. Brea Civic & Cultural Center - Curtis Theater Brea 199 25 mi. Balboa Performing Arts Theatre Foundation page G -5 October 2014 Balboa Village Theatre Business Implemtation Plan © 2013 AMS Planning & Research Corp. Venue Name Location Seats Distance University Venues Vanguard University - Lyceum Theater Costa Mesa 185 6 mi. Orange Coast College - Robert B. Moore Theater Costa Mesa 900 7 mi. UC Irvine - Bren Events Center Irvine 5,710 8 mi. UC Irvine - Swan Theater Irvine 125 30 mi. Irvine Valley College Irvine 63 15 mi. Golden West College Huntington Beach 340 16 mi. Chapman Univ.- Waltman Theater Orange 240 18 mi. Fullerton Joint Union High School- Plummer Auditorium Fullerton 1,314 18 mi. Cal State University - Carpenter Performing Arts Center Long Beach 1,074 19 mi. Soka University -Soka Performing Arts Center Aliso Viego 1,000 21 mi. Cal State Fullerton Clayes PAC - Halberg Theater Fullerton 150 24 mi. Cal State Fullerton Clayes PAC - Recital Hall Fullerton 200 24 mi. Cal State Fullerton Clayes PAC - Young Theater Fullerton 250 24 mi. Cal State Fullerton Clayes PAC- Little Theater Fullerton 500 24 mi. Cal State Fullerton Clayes PAC - Meng Concert Hall Fullerton 800 24 mi. Servite High School -TO School Theater Anaheim 980 24 mi. Saddleback College - McKinney Theatre Mission Vejo 405 26 mi. El Camino College Center for the Arts - Marsee Auditorium Torrance 2,048 29 mi. Balboa Performing Arts Theatre Foundation page G -7 October 2014 Balboa Village Theatre Business Implemtation Plan m 2013 AMS Planning & Research Corp. Appendix H: Implementation Timeline Balboa Performing Arta Theatre Foundation Balboa Village Theaba ImglamantaEOn (aublt,d to cbanga) cwNk ^.a naaa 5B rear teaae Begim cansirdn:n Zddl"ms Construction PermnliN BH for General Contractor COnl a t Asmded GnwIdbneakilg Cans Wcbo, Extemal SWI Cons"miod- Inlemal Bub Ealemal Sigrege Deagn V= Opening dill Cam munlwlloNApprowls As R.'Aw br CmslNCtion MD Daaelo"ant Cepdel C Paign (S M before gmundbnaaFmg) Qty Financing M Placa for Sbeg Ful,drlma g Fead ibllty Study Dpnalmg Fund Campaign Pluming Membership Pwpnam Planning Salad SPmsersh, Sales Ibans(M.,Jd, Tiaunti. , Eno) butall DElca rt o de taw alidkld , ae., nc) Mow into AdnlNSbatiae DIRCea Identity TchMing SaM. idddor Websila DesNapment M. in Syslema IvullalicNTrainng Mow into tlevi V. Negouale Talent Buyer Comracl Negotiate Film Padenlmg PannBla111P Negotiate Food and Beverage Contract miry Engagement Geoundt,t k,, Esent C rdmunily Ewm(a)MD DMe• IwnaM1l b M� Mcw N auction Taam 0Maucation� .OVIwlE terry ull<s Balboa Performing Arts Theatre Foundation Page H -1 April 2014 Balboa Village Theatre Business Implementation Plan © 2014 AMS Planning & Research Corp. Padonning Artaneatm Foundation Village Theahe Implementation entitle. Timeline NG GRAFT (subject to change) hepYpd T. Firs) Sa MaraM Programming: PWnirglBOaMng Opemg real &a Months Pmgmmmirq Perinnnencea Second Six Morons Proganming. PlanrvrglBOOFing Second Six Months Progmrni,nn, Pcr(onnarrces Second Season Plaming Education Piagnam G ,vdopmanl Education Program Manc ingrEmollment Eduction Progran Test Season Education Program launch First Season Education Progremmkg Menlregng natilNbn.N Mickai g''Aw .., Educaional Pngnm MaMetinp First So Months Pmgm anon, Ma teling pwioped First $.a MMIM1S Pie, ... n, McNelm, Rdl ON Second Six Months Programming Ma�kehng Ge.eloped Second Su Months Progro nin, Marti Roll OM Secaio Seuon Planning Stall Ridng Gmelopmem a Sponsorships Died. MaheJng Qrxlor Finance Manager ProJUddNAMst Retellons prvctor Sox OlscdFOWMemeoclep Sales Manager catcall.] and Mai tlearni Manager Educutia OOadfinator(PT) Boa OBCel Comae, So.. (2 PT) ride VduNer Pragnan Reaull Va.. M Pied. Board d Undo. Bard RacivdMant. Pool Frc Mcna d goad RecvilmeN- Fall Boand Deli: Plemirg'RnponaiGMy' Minlaallalech edw (PlaQanmMg Oeselopmenl CEdBOrd Edualbn Pmtl'MIaVFadlltla DeSWWUnsv Wa Teem ■MeAalhg .IXhedEatrrld Balboa Performing Arts Theatre Foundation page H -2 April 2014 Balboa Village Theatre Business Plan © 2014 AMS Planning & Research Corp. Appendix 1: Pro Forma Operating Model BPATF Pro Forma Operating Model Based on the activity profile, research into comparable facilities and experience with similar venues, AMS prepared an operating pro forma estimate for BPATF's operations. The pro forma operating model is intended to provide a base of information that may be adapted as planning, development and operation of the facility progresses. The pro -forma was custom - developed to reflect the current plans of the organization, arts and entertainment facility trends, and normal operational standards for facilities of similar size and scope. The operating model was originally developed in September /October 2013 as part of the initial planning work for the Balboa Village Theatre. The model was updated in March 2014 to reflect changes in design, market research findings, and updated assumptions. A narrative description of operating model elements and assumptions can be found on pages 37-47 of the report. Balboa Performing Arts Theatre Foundation Balboa Village Theatre Business Implementation Plan Page 1 -1 April 2014 © 2014 AMS Planning & Research Corp ;.1 '.� iSTO'' ;.I i-' iti I f 1 _ 7 � ! - Y, d � �ll ��, /(�I ¢� mil �1i4 r�% �� .� i,��..• ��l i r V� ��'I �' b i, a: � �i �% �l ,.�/4� \•1 PL��iJ �, U 1 L :u11 ��•i� �k Ll ll 'e:• l�a 1, I Pro Forma Operating Statement Base Year (2014 dollars 0 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation OPERATING PRO FORMA CONTENTS Schedule # Page# Key Assumptions Schedule 1 Page 3 Programming Assumptions Schedule 2 Pages 4-5 SUMMARY PRO FORMA Schedule 3 Page 6 REVENUE SUMMARY Schedule 4 Page 7 EXPENSE SUMMARY Schedule 5 Page 8 Activity Model Schedule 6 Page 9 Sample Season- Live Performance Schedule 7A Page 10 Sample Season- Film/Media Schedule 7B Page 11 Attendance Projections Schedule 8 Page 12 Ticket Sales Schedule 9 Page 13 Ancillary Revenue Schedule 10 Page 14 Sponsorships Schedule 11 Page 15 Ticketing & Facility Fees Schedule 12 Page 16 Facility Rental Schedule 13A Page 17 Chargebacks & Cost Recovery Schedule 13B Page 18 Education Program Schedule 14 Page 19 Presenting Expenses Schedules 15A -C Pages 20 -21 Staffing and Compensation Schedule 16 Page 22 Administrative Overhead Schedule 17 Page 23 Building Operations Schedule 18 Page 24 Membership Schedule 19 Page 25 Contributed Income Schedule 20 Page 26 Implementation Budget Schedule 21 Page 27 Capital Funding Schedule 22 Page 28 © 2014 AMS Planning Research, Corp. 413!2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation ASSUMPTIONS SCHEDULE 1: KEY SPACE ASSUMPTIONS Capacity- Performance 300 Capacty- Film 300 Capacity- Events (seated tables) 125 Capacity- Events (standing) 230 ECONOMIC ASSUMPTIONS Average Annual Expenses Escalation Factor rice increase 0.0°% Average Biennial Revenues Financial Escalation Factor price increase 0.0°% Average Biennial Revenues Financial Escalation Factor contributions 0.0% Compensation Escalation Factor (average annual)- Administration 0.0°% Fdn a Benefits Rate Full -time) 22.0% Fringe Benefits Rate Part time 0.07 Payroll Taxes 8.0% Rental Rate Increase (average bi-annual) 0.0% Contingency ° %of Operating Expenses 5.09 BUILDING ASSUMPTIONS Building Opening: 2015 # of Years 1 Total Gross Square Footage 5,420 Total Occupancy Costs $85,822 Occupancy Costs per Sq. Ft, calculated $12.14 0 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Overall Venue Live Performance Film no X00 comps Live Performance Film iusemenVTickel Tax (Included in Ticket Price) 1 0% clity Fees (AN Tickets except Family Film) 84.00 nvenience Fee(PhoneAntemet Tickets Only) S 4.00 Average Tickets Per Order 2 %of Tickets Sold- Phonenn emel 81% %of Tickets Sold- Onsile 16% ,oil Card Fee Expense (% of GR) 2.5% Gre61 Card Capture Rate 90 V Lease Fee (% of NAGR) 25% endance Prolec0ons overallvenoe Live Performance Film Performance - General Performance - Specialized Performance - Young Adufis Performance - World Performance - Local(Regional Performance - Family Focused Performance - Special Events Performance - Lectures Media - Documentary Media - Other Specialized Media - Family Focused isenting Partner Deal Structure: house Share: Show Pmfils % Of Net or Gross: Concessions Commission Merchandise Commission Packing, nel Self- Resented co-Preirenta0on (Split) 100% 50% Net Net 100% 100% 100% 100% 10D% 100% © 2014 AMS Planning Research, Corp, 4/:;12014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Ardst Fen -Live Performances Show Percentage of Sales DR Average Guarantee: Live Performance - General Live Performance - Specialized Live Perfornance - Yang Adults Live Performance - World Live Performance - Local/Regional Live Perimmance, - Famly Focused Live Performance - Spedal Evenls Live Performance - Lectures 3ooking Agent Fee (% of NAGR) RImNed)a Rental Fees (Mgher of) lal Fee Flm- Documentary Film - Other Specialized Film- Family Foeused Slagehand Labor Labor Rate/Hr Labor RatelHr wl Payroll Tax Hours Per Perbrmance Overall Venue Live Performance Film Overall Venue Live Performance Film Overall Venue Live Performance $13.50 $14.58 Labor RateMr Labor RatelHr wl Payroll Tax Hours Per Performance TransportatioN Lodging- Touring ads Transportation! Lodging - Local ads or Induded in Guarantee HosprWitylCatenng Lloemses, Royalties, Permits & Fees (% of NAGR) udion and Equipment Rental Shipping is Rental trative Expenses g(per ticket sold): Copying. Postage mus Expense ssons (per capita sales) ssions commission (gross sales) andise (per capita sales) andise Commission (gross sales) U Fee (per car) S Per Car g Commission (gross fees) Sponsorships le Show Sponsorship it of Sponsored Performances Film Overall Venue Live Performance Film 2.45 0.90 $751 $50 $208 $50 Overall Venue Live Performance Film 0 2014 AMS Planning Research, Corp. -1!3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation s • • OPERATING REVENUES Year 1 Year 2 Year 3 (Base Year) Year 4 Year 5 Ticket Revenue $659,100 $659,100 $887,200 $887,200 $1,112,300 Ancilla Revenue $58,100 $58,100 $68,100 $69,500 $75,800 S nsorships $223,000 $223,000 $329,600 $329,600 $362,100 Ticketin and Facility Fees $139,400 $139,400 $168,200 $168,200 $196,000 Rental Income $157,0001 $157,000 $187,3001 $187,300 $216,100 Rental lncome/Cha ebacks $6,700 $6,700 $6,200 $6,200 $6,200 Education Program $21,500 $28,800 $42,800 $42,800 $42,800 TOTAL OPERATING REVENUES $1,264,800 $1,272,100 $1,689,400 $1,690,800 $2,011,300 OPERATING EXPENSES Presenting $846,900 $846,900 $1,164,000 $1,164,000 $1,472,600 Personnel $ 620,200 $622,400 $662,700 $662,700 $662,700 Administration $190,100 $190,100 $190,100 $190,100 $190,100 Building Operations $65,9001 $65,900 $65,9001 $65,900 $65,900 TOTAL OPERATING WENSES $1,723,100 $1,725,300 $$08$700 $8082,700 $2,391,300 Expense Contin enc $86,200 $86,300 $104,100 $104,100 $119,600 Operating Revenue as % of Expenses 73.40% 73.73% 81.12% 81.18% 84.11% RESULT OF OPERATIONS (before depreciation) ($544,500) ($539,500) ($497,400) ($496,000) ($499,600) CONTRIBUTED REVENUES Memberships $65,600 $73,700 $82,900 $93,200 $104,900 Private Sector - Grants and Conldbutions $320,000 $320,000 $320,000 $320,000 $320,000 Special Events $10000 $100,000 $100,000 $100,000 $100,000 Govemment - GrantsandContributions $0 $0 $0 $0 $0 Endowment $0 $0 $0 $0 $0 TOTAL CONTRIBUTED REVENUES $485,600 $493,700 $502,900 $513,200 $524900 TOTAL RESULT (before depreciation) $(58,900) $(45,800)1 $5,5001 $17,2001 $25,300 Depreciation (Tenant Impmvements) $20,5001 $20,500 1 $20,500 1 $2D,500 1 $20,500 TOTAL RESULT (after depreciation) $(79,400) $(66,300) $(15,000) $(3,300)1 $4,800 Balboa Performing Arts Theatre Foundation Year Year Year Year Year OPERATING REVENUES $1,264,800 $1,272,100 $1,689,400 $1,690,800 $2,011,300 CONTRIBUTED REVENUES $485,600 $493,700 $502,900 5513,200 $524,900 OPERATING EXPENSES +CONTINGENCY $1,809,300 $1,811,600 $2,186,800 $2,186,800 $2,510,900 TOTAL RESULT (before depreciation) ($58,900) ($45,800) $5,500 $17,200 $25,300 DEPRECIATION (TENENT IMPROVEMENTS) ($20,500) ($20,500) ($20,500) ($20,500) ($20,500) TOTAL RESULT (after depreciation) ($19,400 ($66,330) ($15,000) ($3,300) $4,800 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Thealra Foundation 9 pey o Y.vl Y.2 Yir3 19.9. Y.0 Y..r$ YNr$ gMmg e iVliel Reverua ndnl6We 3459,100 3658,100 $BB],M $8811A0 31,111,300 Pndlary Revs-.ua Mdlsyl $AIM SMIM sw'Iw $69,500 n5,8W 6yw,mc4pa MAW SMMD $329,6W $V%600 $357,IM .d Fad fast T SIX" 6139aW SUM $16RWo SIMM RweWl Ftl{Y FbA/ n51,000 n51= 3181,300 $ .= U181IW Rw+A M9Mn.AnyOeaatl:. SA 36,100 skm 56,200 ssm 6AOlbn Prrprem 511 SW.BW S42.8W 34M I MOW buPTW, Aa mN Revanu. n 1 eW 11,$ IW S,0,400 S1,80,800 011500 TO2L2FBRATIW3 RNEO REVENUkS n3a1100 11111,1W 1 $1 agum 1 32 atl Sao Sep AFwel Mw'La'tlepa Matt" SKM $T$,I00 381,9W S917W S1M.M RiVNa S.cbr- Carhad CwANlaw6 Ov09utl so= N5,55 SSW.WO $31a.WO MM US SpeuYEvws WnYPoW.O $1W,W3 sw= $IW.WO $IW.000 Ga.emmmd.0 SNatl CwYtu9ws Lmhp1Y0 9] W1 W1 Is so FMwrmaN WA W t7 sol v m S T.-I I a Roft W'M n m I n01BW I UI=o 1$S44 TOTALWWMBU ML!j 0 RBY6FARS $1MSW $49317001 $601.000 MUM f= TOTALRMNt S 1 1 $1,7M.4001 S1,76sMi 51,122.3w WWM—1 51536,260 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation 4 Reference Y.I Yeri Yaar3 Bat. Yer) Yw4 Y.5 I'manibnoRmW BPAIFFANMSdie I Promnilg S18000 518000 $20.800 $20.000 $20,600 BPATF- t.Pero,mence I F-UQ 5825,200 5825,200 31.139,000 31,138000 51,418.800 RentalA ly S@ M I e My 55,100 I 1 $5,11M 1 55.100 1 35,100 ji 1 $5,400 Sue Toni. PmsaeNq pm. I 900 $844900 1 31,16(M I S1.114000 1 3147000 Persenml we cwr' o Full Trre SWIL19 91,500 5591,500 5811,900 $621,900 5827,900 SlenC rnpuvatlon Prl Tvr.AdMn SING 318,100 538,900 3]4=00 534.800 534,800 Sue T.W. Pmamnd an AOMMandion 1670700 (672400 1 566 4100 I 3861700 I "BUM P,de9mul F. (CPA Legal, Webe9e, as Mrimaranon MAD $50,000 558000 S58000 S50AII M, Ranni fid 4 alon 530,000 00.000 530,000 330,000 530,000 Offa SUpph. ax Equo.1 AdmrvWSOOn 571.500 521,500 527.500 S27,500 S27,500 Pw.w'nN Onre manMwnibp I Admoweaeon 3800 58011 5600 $No 5500 InsoaMOnal Mmhaig I ABmitiasaon 515,000 $15800 WAN 515.000 515,000 FuMralsinglDwnlo .I I AdmSdWNOn 367,000 367,000 567,000 $87,000 567,000 Sub TOnL Adminis0a0on (/98100 9188100 3190,100 3190,100 3196100 Building Operations La3Nn(Oa4, E aeft Weir. Bu0ig 01'vJvm 510.800 510.800 510,800 S18a00 $10,900 Bmurea 538100 530,100 330,100 538100 330.100 wbral OPreBmm $2,700 52100 52.100 32100 52700 C ig&MNmewxe Baefeg Opraions $4.100 $/,100 51,100 51,100 54,100 Nw4caPnaMmlwmnceBRopaas BMafine Lwasons S18,200 516,200 11 318700 519,240 318,200 Sn T-bl, Building Opembona 388100 Sa3900 !6;900 365900 I "Am Subo N Oermbns I 51,70,100 1 51725,300 1 57,082,100 1 37,011100 1 37,391,300 se 1 $86,200 1 586.300 SI04.100 I 3104,100 I 5118000 TOTAL OPERATING UPENSES wI Contn,mp si.10.301 37811,600 31186800 SZ186,8401 1121510,900 Oa S20,500 S20.w 528500 220.500 1 $20,500 TOTALEBPENSFSwlC ngeng8 IM .M. 51.829,800 $1,832,100 $2,201.300 $2,707,300 1 $1531,400 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) lboa Performing Arts Theatre Foundation immi Year Year Year Year Year 1 BPATF Presents Film/Media 23 23 29 29 29 Live Performance 70 70 94 94 119 Non - Perf /Class/Tech /Rehearsal 0 0 0 0 0 Meetin slSocial Events 4 4 6 8 8 Subtotal, BPATF 97 1 97 129 1 131 156 Non•p rofitlGovdEducati on Film 31 31 31 31 31 Performance 9 9 9 9 9 Non - Perf /Class/TechlRehearsal 41 41 41 41 41 Meetings/Social Events 16 16 16 16 16 Subtotal, Nonprofit/Govdfducalion 97 97 97 97 97 CommerciallPrivate Film 0 0 0 0 0 Performance 2 2 0 1 0 0 Non- Ped /Classffech /Rehearsal 0 0 0 0 0 Meetin slSocial Events 8 8 10 10 10 Subtotal, Commercial 10 10 10 10 10 Total PerformancelFilm Screening 135 135 163 163 188 TOTAL USE DA S (Nan- education) 204 204 236 238 263 TOTAL USE DAYS With On -site Education 212 218 256 258 283 site Education 23 30 45 45 45 O 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation Year 1 Year 2 Year 3 (Base) Year 4 Year 5 Average Film- Documentary Film- IndependenVClassic/Foreign Film- Family /Children's 7 7 7 7 7 0 0 6 6 6 16 16 16 16 16 Total Showings 23 23 29 29 29 Estimated Attendance 3,770 3,770 4,814 4,814 4,814 Average Event Ticket Price $9 $9 $9 $9 $9 Season Average Ticket Price Paid $8.65 $9 $9 $9 $9 Revenue Gross Box Office Revenues (NAC) $32,596 $32,596 $43,036 $43,036 $43,036 Less Applicable Taxes $0 $0 $0 $0 $0 Net Adjusted Gross Revenue (NAGR) $32,596 $32,596 $43,036 $43,036 $43,036 Expenses Film /Media Rental Fees $11,409 $11,409 $15,063 $15,063 $15,063 Presenting Expenses $14,111 $14,111 $17,844 $17,844 $17,844 Administrative Expenses $6,508 $6,508 $8,309 $8,309 $8,309 Total Expenses $32,027 $32,027 $41,215 $41,215 $41,215 Net Show Profit $569 $569 $1,821 $1,821 $1,821 Less: Partner Share of Show Profit ($284) ($284) ($911) ($911) ($911) Show ProfltlLoss $184 $284 $911 $911 $911 Ancillary Revenue $3,393 $3,393 $4,333 $4,333 $4,333 Less: Partner Share of Ancillary Revenue $0 $0 $0 $0 $0 Venue Revenue $14,027 $14,027 $17,706 $17,706 $17,706 Total Financial Impact $17,705 $17,705 $22,949 $22,949 $22,949 0 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation Year Year Year 3(Base) Year Year e ea ' e• Average Live Performance- General Live Performance- Specialized Live Performance- Young Adults Live Performance- World Live Performance- Local/Regional Live Performance- Family- Focused Live Performance- Special Events Live Performance - Lectures 6 6 10 10 12 16 16 22 22 28 6 6 9 9 13 5 5 7 7 10 16 16 20 20 24 8 8 10 10 12 6 6 8 8 10 7 7 8 8 10 Total Performances 70 70 94 94 119 Estimated Attendance 16,070 16,070 21,688 21,688 27,463 Average Event Ticket Price $38 $38 $39 $39 $39 Season Average Ticket Price Paid $39 $39 $40 $40 $40 Presenting Revenue Gross Box Office Revenues (NAC) $626,520 $626,520 $875,188 $875,188 $1,111,235 Less Applicable Taxes $0 $0 $0 $0 $0 Net Adjusted Gross Revenue (NAGR) $626,520 $626,520 $875,188 $875,188 $1,111,235 Presenting Expenses Artist Fees $517,038 $517,038 $718,721 $718,721 $913,935 Expenses $201,983 $201,983 $273,864 $273,864 $348,365 Administrative Expenses $106,171 $106,171 $145,378 $145,378 $184,303 Total Expenses $825,191 $825,191 $1,137,962 $1,137,962 $1,446,603 Net Show Profit ($198,672) ($198,672) ($262,774) ($262,774) ($335,368) Less: Partner Share of Show Profit $0 $0 $0 $0 $0 Show ProfitfLoss ($198,672) ($198,672) ($26 ;774) ($262,774) ($335368 Ancillary Revenue $28,765 $28,765 $36,822 $38,822 $49,158 Less: Partner Share of Ancillary Revenue $0 $0 $0 $0 $0 Net Venue Revenue (Fees etc) $220,681 $220,681 $296,198 $296,198 $374,934 Total Financial Impact $50,775 550,775 $72,246 $72,246 $88,724 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation 4 r ' • e e Avg %Sdd Year Year Year ? Base Year Year4 Yw5 Avg. Toots sold Projected Events Projected Tickets Sold Aug. Tickets said Projected Events Projected Tickets I Sok1 Avg. Tickets Sald Projected Events Projected Tickets Sold Avg. Tickets Sdd Projected Events Projected Totals Sold Avg. Tickets Sdo Ptq� Events Proected Tickets Sold BPATF Presents FIm/Media 55% 164 23 3,770 164 23 3,770 166 29 4,814 166 29 4,814 166 29 4,814 Live Performance 77% 230 70 16,070 230 70 16,070 231 94 21,688 231 94 21688 231 119 27463 Subtotal BPATF 93 19,840 97 79,840 113 26502 123 1 26,501 1 148 1 7 ;277 Non•pmOUGovIlEducation Fih 85% 2551 311 7,905 255 1 31 7,905 255 31 7,905 255 37 7.905 255 31 7,905 Live Perfonnantce 65% 195 9 1,755 195 9 1,755 195 9 1,755 195 9 1,755 195 9 1,755 Subtotal Other Use 1 40 1 1 40 I 9,660 1 40 1 9,660 1 1 40 1 9680 Commercial Film 70% 0 0 0 0 0 0 D 0 0 0 0 0 0 0 0 live Perormance 90% 270 2 540 270 2 540 D 0 0 0 0 0 0 D 0 Subtotal, Other Use I 540 I 540 0 0 0 0 0 0 TOTAL ATTENDANCE AND SALES 135 30040 135 30,040 163 38,182 163 36,162 188 41,937 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) © 2014 AMS Planning Research, Corp, 4/3/2014 Balboa Perlormin g Arts Theatre Foundation a Avererye Troket Pdce Avera3c B:Annual price Escalation A4lusled Avg. Ticket Price Year1 Projected# ikkels Sold Projected Tcket Sales Adjusted Avg'T�ket Price Year2 ProjeUetl# Tcke6 Sold Projeced TKket Sales Year Adjusted Avq. Tcket Price 3(Base Year) Projected# tickets Sold Pmjecled Ticket Sales Adjusted A�'Tkke1 Price Year4 Projected# Tickets $old Projected Tickel5ales Adjusted Avg. Tcket Price Year5 Rojepetl# Tickets Sold PMisled Trkel Saks BPATF Presents: Fj,dimedia $9 0.00% $9 3,770 532596 S9 770 595 $9 4,614 $41,623 $9 4814 $11623 $9 4814 $41,623 Live Pedmmar¢e $39 0.06% 339 16070 E626,520 $39 16070 $fi2652(1 $39 21.fi86 $645.561 $39 21,fi88 5845 1 $39 21,463 51,070,677 L Pander. Share $16,298 $16.298 f21,5t8 $21,518 21,51 TOTAL ATTENDANCE AND TICKET SALES I 19,810 1 $659,116 1 1 1%840l $659,116 1 1 26,502 $887,184 1 26,5021 $887,184 1 32,177 $1,712,300 © 2014 AMS Planning Research, Corp, 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation a 1 Year AN Tickets Film: 11,675 Performance: 18,365 Year2 Year 3 lease Year) Year Year AN Tickets FOm: 11,675 Pedormance: 18,365 All Tickets Film. 12,719 Padprmance: 23,443 AN Tickets Film 12.719 Performaree:1 23,443 All Tickets Film: 12,719 Performance : 1 29,218 Per concessions Capita Sales $61,878 $55,095 Sales 561,878 555,095 Sales Sfi7,411 $70.330 Sales $67,411 $70,330 Sales $67,411 $87.&U Gross Sales-FlImMe3a $5.30 Gross Sales -Live Performance 83.00 Concessions Commission 30% $35,092 $35,092 $41,322 1 $41,322 $46,519 Per Merchandise Capita Sales $C 518,365 Sates SO 518,365 Saks $0 $23,443 Sales $0 $23,443 Sales $0 $29,218 Gross Sales- FilmNedia $0 Gross Sales-Live Performance $1.00 Merchandise Commission 20% $3,673 $3,673 f4,B89 $4,689 55,844 Avg People Per Parkin Per Car Car Parking #Cars Fees Parking Fees Parking Fees Parlung Fees Parking Fees Pareln Fees- FtlnuMecha 240 $0 4,865 s0 4,865 50 5,300 $0 5,300 $0 5 °W $0 Parton Pees -LNe Performance 240 $0 7,652 $0 7,652 $0 9,788 $0 9.768 $O 12,174 $0 Parkin Commission 0% s0 s0 50 s0 I s0 Catering Commission Guests Avg. Catering # Events Saks Calenng Sales Catering Sales Catering Sales Catering Sales Gross Sales- Events 1 115 1 330.00 26 $96,60D 28 $96,600 32 $110,40 34 $117,300 34 $117,300 Cale/in Commission 1 20% 1 $19,320 1 1 $19,320 1 1 $2$080 1 $23,460 1 $23,460 NET CONTRIBUTION 5531011511 $58,0651 $68,091 $69,471 375,823 © 2014 AMS Planning Research, Corp. 413/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation e • - • Per Show Sponsorships • • •- Average Sponsoi %of Events Year 1 # Events Revenue Year 2 # Events Total Revenue Year 3 # Events Total Revenue Year 4 # Events Total Revenue Year 5 # Events Total Revenue BPATF -Live Perbrmanc $3A00 1 30% 70 $63,000 70 $63,000 94 1 $64,600 94 1 $64600 119 5107,100 Annual Season Sponsors Film Series Concert Season Corporate Memberships Membership $25,000 $75,000 $5,600 #Sponsors Revenue It Sponsors Revenue #Spws Revenue #Sponsors Revenue #Sponsors Revenue 1 $25,000 1 $25,000 1 $25,000 1 $25,000 1 $25,000 1 575,000 1 $75,000 2 $150,000 2 $150,000 2 5150,000 #Sponsors Revenue #Sponsors Revenue #Sponsors Revenue #S nsors Revenue It Sponsors Revenue 12 $60,1010 12 E60,000 I 14 $70,0 14 $70W 1fi $60,000 TOTAL MEMBERSHIP FEES 1 $227,000 $223,000 1 $329,600 $329,600 362,100 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Tboatra FwnEatim Year] YurS to,, Y Y4r4 YYr6 TICKET SAFES SPATFiA WATFF.rramuan NFB,Gnu£OUS9m NFPIGwafdr- PVlamance Cvnmatti6FNn Cnmt4rSalMMonnmoa iel4l Tekm 3alr PNOWNTETNET OROER NANgJNO FEE Fr Cap Fme T.la%tpr ONr Tl&eto n0 Ti w ]110 T w 4.814 21.646 7905 1.155 Tolle 4,814 ]1669 7905 1755 TcMal. 4,814 ])463 7905 1155 16.070 1905 16,01D 1905 t )SS I ]55 540 $0 30,010 Fe.grfiar Omre Fes, 30,040 F4a0r6at Or.err Fee. 36162 FnID Dens F. X161 Feopear Or04rs F. FoNd6at d6at4 41,93) Fern SPATE Rm z0 w $754 13016 w SM m,016 w mm mfist w 51851 w 363 m.851 9PATFPmhmv 246 w $&146 326,990 w 54149 $26,996 w m,109 16,4]6 $ 19.109 5]6,/39 $ $11,531 $6.137 NFPIC d4 Fm MUM" 2.0 $ m m w m m $ m 11 w m m $ m m xFPA1oArEtluParbrnvrte 20 w 7)31 msle $ 6]3} 52,948 w 5 }S} 52,910 $ S1]] 8,910 w 5)31 12,946 Cem ..kvft 24 w m m w m m w m m w m m $ m m Cwmao AWm1 zo $ i2Z1 Sm1 $ f221 590] w m m w m m w m SOI.W, Nand Fn 053 151469 MUM S 251 112F11 FACIERYFEERFBIIIE WATF -Fin 9ATFFartormev NFPAbF9E0aFim Fee Nm $m SIm w.m Caelme Pate I 100% I 100% 100% 100% FnR V Fn. Faaff 4q Fan F .axeol 0 Fore $19,356 Fed i Fen F. 7 Fen $15'M $ $ SISM w $ 119)56 w $9 rS4 W.M 531,66 W4,sm $ SK.M4 M.754 w SA 51m,0m $ w 531,6211 w i11,6m w $ DUN 1,620 5?020 $ S),Om S),02 34 S/,DA w $ 12.1m Szim w m w m m wirol.l.fa}6 Fare $ID1$ $20.146 11 6m $ em 1101746 CREDIT CARO FEE FCPEI6E ®ATFA WATFPerlotnwce RN. z5% 25% Cya,e Rat. 6()16 90% CCS1a Bah. Tat CC6wne CCwla W. T. WEA a CC Sdw Belae is 5219]4 t)w6m a (562/) 19. CC Seim Oa&. T. CC EOmto CC Sates B Ta 321914 5961610 CC (5624) 521,090 41988 Sm3.B60 8109) S$m} 119 356 909 OM) 14. PP 4914 501,005 156141 51902 wSWi CraEN C,Fl fw SI 11,M 6.449 $n TOTAE 00 %OFFlCE FEES6 COMIM5910NS 5131,444 ItS9,N4 1161.2$ $RM I 5185,915 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation Year Year Year Base Year Year Year s Rental Rate Uses Rental Rate Rental Charge Uses Rental Rate Rental Charge Rental Uses Rate Rental Charge Uses Rental Rate Rental Charge Uses Rental Rate Rental Charge BPATF Presents Film $500 23 $500 $11,500 23 $500 $11,500 29 $500 $14,500 29 $500 $14,500 29 $500 $14,500 Performance 1, 50 1,150 1,150 ,5 9 1,15 1 ,1 1,150 108,1 0 i 1,150 136, 5 Non- Ped/Class/rech/Rehears al 0 0 0 $o 0 0 0 0 0 0 o MeeO s/Soaal Events f 0 0 $0 6 0 0 8 0 B 0 Subtotal, BPATF 97 $92000 97 $92,000 119 5112,600 131 $12T,600 156 $151,350 Non- profillG ovt/Eduralion $500 31 00 $15,500 31 500 15,500 31 $500 $15,500 31 500 $15,500 31 500 $15,500 Performance $1,150 9 1,150 -FiF3-0 9 $1,150 10,350 9 1,150 10,350 1,150 10,350 9 $1,150 10,350 Non- Ped/Class/Tech/Rehears al f 250 1 , 250 10, 50 1 $250 $10,250 41 250 10,250 41 250 10,250 Meelin s/Social Events 50 1 5 o 50 85 1 Tbol 50 1 0 850 -TTW Subtotal, Non roONGovVEducation 97 $49700 97 $19,700 97 549,700 97 $49,700 97 $49700 ommerciatlPrivate Film 600 00 0 0 60 0 600 Performance . 5 2 1,650 ,3 2 1,650 3,3 0 0 ,650 1,65 1,650 0 Non- PerflCless/rerh/Rehearsal 420 0 0 4 0 0 0 0 2 $420 0 Meetings/Social Events 51,500 8 ,5 0 12,000 8 $1,500 $12,000 10 $1.5001 $15,000 10 1,500 15, -10- $1,500 15,000 Subtotal Commercial 10 $15,300 10 $15,300 f0 515,000 10 $15,000 10 515,000 TOTAL PERFORMANCEIFILM SCREENING 735 135 163 163 188 TOTAL USE DAYS (Non - education) 204 157,000 204 107,000 236 187,300 238 $187.300 263 16,050 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) © 2014 AMS Planning Research, Corp. 413/2014 Balboa Performing Arts Theatre Foundation •as a 9of Events Yeai1 Fee Amount Y0ar2 Years OotEwNs lease Yaar Fee Amount pof Events Year4 Fee Asmurd Rol Ents YearFee Fee Amount Od Events Fee Amount F requency Escalelion Fee rUABOR S25D 50% 0% 6 $250 S750 6 5250 $750 $250 55 4 3250 $500 s Facts f750 f73p SSpO 5500 Oo.'Evenls Fee Amoral Oof Eves Fee Amours 0of EeMs Fee Amewl Mof Events Fee Amount p0l Everas Fee Amaral dvg Par Even Frmuency Escalatbn 360.00 75% 0% 42 $60 1890 42 580 57,600 40 380 51,000 40 Sun 51,600 40 560 31,800 $12000 5% 0% 11 I 53,780 42 3120 53,780 40 S1 S1 40 5120 53.600 40 5120 57,600 S.bt.tat Vanes Labor f 670 SS'Go -S ;4H 9,,400 Opp EQUIPMENT \vp Per Even Frequency Escalation pof Evenly Fee Amount kul Events Fee Amount "Emuds Fee Amount pof EvmB Fee Ameur4 #Of Everts Fee Pramual Specaalued a er4 $70.00 10% 7A 42 570 $291 42 570 5291 40 570 5200 40 570 5280 W f70 5200 S.W.WE ui meal Rental fP91 5291 S780 7750 f21D TOTAL RENTAL ADOITNINAL $6,711 56.774 34100 (1,110 51,110 © 2014 AMS Planning Research, Corp. 413/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation a 1 a a classes Mph 6 O3ete 15 Yaa2 OQnna OraOe 11 q W Year 3(Sase Year ) 0cl ®s Mafa to Onpb 36 Y.4 00. CimL ifi GSele 38 Year 0C1mn MWa 16 pldb % Fuld F. Han 6abc 150 8.000 10 3(1,5001 1800 Tad F"Fbac SaW Tab' Fee I SaMS 12W 521,0110 ® Sia,D»7 Tad Fee Mwe III raw Fee Han SMe NraOs fSEdvh Mars Pe dau aawp2. IlI gaaaes -Gnsne Sadenl Fens 15 5 MM 825 57.wG 1100 00 321,000 1N2 W4,00o Lent lravacbr Feaa 5 wow 55 51;2501 BO $!1,0001 Lest C.h Fen zn, 4,500 51830 E0ea0o0 RaramA MI 141W 510,130 14,200 1, Slem OShdbOa Pa GOSS Hmdr Fr Fn Haas San Fn Haas U. 180D 525200 fn 55.000) Feellaaa Sales 2200 531,8)0 ISO 35.0a51 13130 Foe Mars Sabs Fn1i Saw 2100 5]1,800 lee S1G,0001 1323e gaano OMNa III Fns 15 5 $1100 1350 314900 2100 181 w600 L. hneOUa Fen 5 Mail 90 5(1.5001 55.Om1 L. CF. 35% 61 13,2Y1 Ed.fien Rev. GGdla 31,75 HQ]Ie 3,57 Ns,210 Wage N M natal Sdin aEvaea r6al Sdn aEvan Tdlum5abs 3 51 000 0Erens i6el Sdn 3 511000 # Erenis iiaa 6ebf 3 $12000 Grukul. Ermb Guede imalS rich Sales 200 12400 1 am 1 9000 Gnfu liem Ewa Than Win; as. 7,000 n" E 512000 J1 ;000 I NEFCONFHI9UGGN nta $ $24,n0 512,"0 N2, "0 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation a a Year Year (Base eYear) Year Years Artistic and Production FiIMMedia Rental Fees $11,409 $11,409 $15,063 $15,063 $15,063 Part -Time Sf agehands $1,341 $1,341 $1,691 $1,691 $1,691 Part -Time FrontofHouse $894 $894 $1,128 $1,128 $1,128 Trans odationf Lodi $0 $0 $0 $0 $0 Hos ttal' /Catedn $0 $0 $0 $0 $0 Licenses, Royalties, Permits 8 Fees (% of NAGR $0 $0 $0 $0 $0 Production and E u ment Rental $0 $0 so $0 $0 Film Shi $375 $375 $525 5525 $525 Venue Rental $11,500 $11,500 $14,500 $14,500 $14,500 Sub Total, ArVi B Production 525519 $25,519 532,906 $32,906 532,906 Administration show - related Marketl r8cket: $3,393 $3,393 $4,333 $4,333 $4,333 Printing, Copying, Postage $1,150 $1,150 $1,450 $1,450 $1,450 Booking Agent Fees $0 $0 $0 $0 $0 City Lease Fee (% of NAGR $815 $815 $1,076 $1,076 $1,076 Miscellaneous Expense $1,150 $1,150 $1,450 $1,450 $1,450 Subtotal, Overhead 56,508 $6,508 $8,309 $8,309 $8,309 Less: Partner Share of Expenses $16,014 $16,014 $20,607 $20,607 $20,607 TOTAL FILMIMEDIA PRESENTING EXPENSE 1 $16,0141 $16,0141 $20,607 $20,607 $20,607 Balboa Performing Arts Theatre Foundation a e, Year Year Year 3 Ill year) Year4 Years Artistic and Production Artist Fees $517,038 $517,038 $718,721 $718,721 $913,935 Part -Time Stagehands $28,577 $28,577 $38,375 $38,375 $48,581 Pad -Time Front of House $5,443 $5,443 $7,309 $7,309 $9,253 Transporlati Lod in $36,800 $36,800 $51,200 $51,200 $66,400 Hospiality/Calering $14,000 $14,000 $18,800 $18,800 $23,800 Licenses, Royalties. Permits & Fees (% of NAGR $15,663 $15,663 $21,880 $21,880 $27,781 Produci and E u ment Rental $21,000 11 $28,200 $28,200 $35,700 Film Shipping $0 $0 $0 $0 $0 Venue Rental $80,500 $80,500 $108,700 1108,100 $136,850 Sub Total, Artistic 8 Production $719,021 $719,021 $992,585 $99$585 $1,262,300 Administration (show - related Marketing perlickel'. $39,372 $39,372 $53,137 $53,137 $67,283 Printing, Copying, Postage $5,250 $5,250 $7,050 $7,050 $8,925 Booking Agent Fees $31,326 $31,326 $43,759 $43,759 $55,562 C' Lease Fee (% of NAGR) $15,663 $15,663 $21,880 $21,880 $27,781 Miscellaneous Expense $14,560 $14,560 $19,5521 $19,552 $24,752 Subtotal, Overhead $106,171 $106,171 $145,378 1 $145,378 $184,303 Less: Partner Share of Expenses s0 $01 $0 1 $0 $0 TOTAL LIVE PERFORMANCE PRESENTING EXPE $825,191 $825,191 1 $1,137,962 1 $1,131,962 $1,446,603 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation • • Year 1 Year 2 Year 3 (Base Year) Year 4 Year 5 Production Support Personnel Part -Time St ehands $1,890 $1,890 $1,800 $1,800 $1,800 Part-Time Front of House $3,780 $3,780 1 $3.6001 $3,600 $3,600 Sub Total, Personnel $5,670 $5,670 1 $5,400 1 $5,400 $5,400 TOTAL RENTAL ACTIVITY SUPPORT EXPENSE 1 $5,6701 $5,670 1 55.400 1 $5,4001 $5,400 © 2014 AMS Planning Research, Corp. 413!2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation e e e Administration- Full time BASE %Taxes & %, Annual SALARY )2012 Benefits Escalation Yeart Year2 Year 3 (Base Year) Year Years CEO $100,000 30% 0.0% $130,000 $130,000 $130,000 $130,000 $130,000 Development & Sponsorships Director $75,000 30% 0.0% $97,500 $97,500 $97,500 $97,500 $97,500 Productlon/AdlSt Relations Director 0,000 30% 0.0% $91,000 1 $91,000 $91,000 $91,000 $91,000 Marketing Director $70,000 30% 0.0% $91,000 $91,000 $91,000 $91,000 $91,000 Finance Manager $50,000 30% 0.0% $65,000 $65,000 $65,000 $65,000 $65,000 Box Office /FOH /Membership Sales Manager $50,000 30% 0.0% $65,000 $65,000 $65,000 $65,000 $65,000 Facilities and Maintenance Supervisor $40,000 30% 0.0% $52,000 $52,000 $52,000 $52,000 $52,000 Production Assistant/Artist Relations (Begin Year 3) $28,000 30% 0.0% $0 $0 $36,400 $36,400 $36,400 Subtotal, Administradon-Fulltlme $483,000 $591,500 $591,500 $627,900 $627,900 $627,900 Administration- Part 0me Box Of 6cel Customer Services Representatives (2) $21,164 8°Yo 0.0% $22,857 $22,857 $22,857 $22,857 $22,857 Education Coordinator $0 1 8% 0.0% $5,816 $8,051 $11,956 $11,956 $11,956 Subtotal, Administration-Part time $21,164 $28,673 $30,909 $34,813 $34,813 $34,813 TOTAL STAFFING $504.164 $620,173 $622,409 $662,713 $662,713 $662,713 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation e e Base Year Annual Escalation Year Year Year (Base Year) Year Years Overhead Professional Fees (CPA, Legal, Website, etc.) $50,000 0% $50,000 $50,000 $50,000 $50,000 $50,000 Office Space Rental $30,000 0% $30,000 $30,000 $30,000 $30,000 $30,000 Telephonellntemet - (based onheadoount) $5,980 0% $5,880 $5,880 $5,880 $5,880 $5,880 Telephone /Internet - Maintenanoe/Equipment $4,000 0% $4,000 $4,000 $4,000 $4,000 $4,000 Postage & Mailing - General $2,400 0% $2,400 $2,400 $2,400 $2,400 $2,400 Printing & Copying, General $3,000 0% $3,000 $3,000 $3,000 $3,000 $3,000 Travel, Meetings, Mileage $600 0% $600 $600 $600 $600 $600 Bank Charges $1,800 0% $1,800 $1,800 $1,800 $1,800 $1,800 Licenses /Fees /Permits $2,000 0% $2,000 $2,0001 $2,000 $2,0001 $2,000 Office Supplies (based on headcount) $3,360 0% $3,360 $3,360 $3,360 $3,360 $3,360 Office Equipment- Lease and Purchase $2,500 0% $2,500 $2,500 $2,500 $2,500 $2,500 Equipment Repair /Maint. /Support $2,000 0°/6 $2,000 $2,000 $2,000 $2,000 $2,000 ProfessionalOevelopment /Recruitment $600 0% $600 $600 $600 $600 $600 Institutional Marketing $15,000 0% $15,000 $15,000 $15,000 $15,000 $15,000 Fundraising Expense $40,000 0% $40,000 $40,000 $40,000 $40,000 $40,000 Special Events (Membership BenefilslRospital4 $27,000 0% $27,000 $27,000 $27,000 $27,000 $27,000 Subtotal, Overhead $190,140 $190,140 $190,140 $190,140 $190,140 $190,140 TOTAL ADMINISTRATIVE EXPENSES 190,140 $190,140 $190,140 $190,140 $190,140 $190,140 9 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation � • � Overhead Year 1 year 2 Year 3 (Base Year) Year 4 Year 5 Utilities (Gas, Electric. Water, Sewer) $10,840 $10,840 $10,840 $10,840 $10,840 Insurance $30,050 $30,050 $34050 $30,050 $30,050 Security $2,710 $2.710 $2,710 $2,710 $2,710 Cleaning & Maintenance $4,065 $4,065 $4,065 54,065 $4,065 Non-capital Maintenance & Repairs $18,157 $18,157 $18,157 $18,157 $18.157 Subtotal, Overhead $65,822 $65,821 $65,822 $65,822 $65,822 TOTAL BUILDING EXPENSES $65,822 $65,822 $65,822 $65,822 $65,822 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation A verage Fee "Memb,!hlo Annual Increase In Members Year1 You2 Year3 Year4 Year5 # Members Total Fees # Members Total Fees # Members Total Fees # Members Total Fees # Members Tolal Fees $75 18% 150 $11,250 177 $13,215 209 $15,665 246 $18,484 291 $21,811 $125 14% 25 515,625 143 $17,813 162 $20,306 185 $23,149 211 $26,390 Tier 5250 10% 65 $16,250 72 $17,875 79 $19,863 87 $21,629 95 $23,792 Tier4 1,000 10% 10 $10,000 11 $11,000 12 $12,100 13 $13,310 15 $14,641 Tier 5 52,500 10% 5 512,500 6 513,750 6 515,125 7 $76,638 7 $18,301 TOTAL MEMBERSHIP FEES 355 65,625 408 $73,713 1 468 $82,858 538 593,209 619 5704,935 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars, No Escalation) Balboa Performing Arts Theatre Foundation • t • • • • Year Year (ga Year 3 seYear) Yeard Years Contributed Income Required Board Contributions $120,000 $120,000 $120,000 $120,000 $120,000 Individual/Foundation Gifts $170,000 $170,000 $170,000 $170,000 $170,000 Education Program Support $30,000 $30,000 $30,000 $30,000 $30,000 Fundraising Events $100,000 $100,000 $100,000 $100,000 $100,000 Government- Grants and Contributions $0 $0 $0 $0 $0 Government- Cultural Benefit District Grants $0 $0 $0 $0 $0 Government- Parking District $0 $0 $0 $0 $0 Subtotal, Contributed Income $420,000 $420,000 $420,000 $420,000 $420,000 TOTAL CONTRIBUTED INCOME 1 $420,000 $420,000 $420,000 $42 o;000 $420,000 © 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation • I I • • , • , • Staff Salaries Pre-Opening (16 Months) M.000 Pr rammin (Events net $20,000 Education Program Test Season net $0 Institutional Markefing $20,000 Other General Administration $30,000 Contingency & Reserve $24,000 TOTAL FUNDS $500,000 0 2014 AMS Planning Research, Corp. 4/3/2014 Balboa Performing Arts Theatre Foundation Operating Pro Forma (2014 Dollars; No Escalation) Balboa Performing Arts Theatre Foundation Estimated Year Needed Contribution Needed City of Newport Beach (Lessor) Investment Building ShelVStructure 2014 -2015 $2,000,000 Subtotal, Lessorinvesonent $2,000,000 SPATF (Lessee) Investment Theatre SystemslEquipment 2014 -2015 Pre - opening Operations 2014 -2015 3-Year Operations Support Reserve 2015 -2018 M$Z000,000 Subtotal, Lessee Investment TOTAL FUNDS © 2014 AMS Planning Research, Corp. 4/3/2014 5/26/2014 ATTACHMENT B Peer Review of Balboa Village Theatre Business Implementation Plan The City of Newport Beach has contracted a team of Performing Arts Consultants (Kurt Swanson & Tom Mitze) to conduct a peer review of the Balboa Village Theatre Business Implementation Plan submitted by AMS Planning and Research Corp. Kurt Swanson and Tom Mitze have over 50 years' experience in the construction, opening, management, operations and programming of live theatres in Southern California. Swanson and Mitze have served as consultants on a wide variety of performing arts facilities throughout the United States and Canada. Both Swanson and Mitze are familiar with AMS Planning and Research Corp and have served as free -lance consultants on past AMS Planning and Research feasibility studies. In addition, Swanson contracted AMS to do an economic impact study of the Cerritos Performing Arts Center for the City of Cerritos. It has been 10 years since either Swanson or Mitze worked with AMS. Resumes of Swanson and Mitze are appended to the peer review report. The peer review will follow the format of the Balboa Village Theatre Business Implementation Plan with comments, analysis and response to the issues identified by AMS Planning and Research Corp. EXECUTIVE SUMMARY The AMS Balboa Village Theatre Business Implementation Plan succinctly sets out a road map for the renovation, opening, operation and programming of the Balboa Village Theatre. AMS with the assistance of the Balboa Performing Arts Theatre Foundation ( BPATF) and John Sergio Fisher & Associates (JSFA Architect) has developed a business plan consistent with the actual operation and programming of similar sized performing arts theatres. The detailed AMS analysis and recommendations regarding marketplace, programming, competition, marketing plan, implementation, staffing plan, governance, partnerships, principal challenges, and financial analysis led AMS to the conclusion that "with dedication, focused leadership, and the necessary resources, BPATF will develop a successful venue." SS53 Our peer review analysis and recommendations of the AMS Balboa Village Theatre Business Implementation Plan will focus on local issues including fundraising, the location of the Balboa Village Theatre and specific programming recommendations that we believe need to be considered, expanded or modified. In general, we believe the market for the Balboa Village Theatre will be local with only limited participation from patrons at the outer areas of the 30 mile primary market identified in the AMS report. In our experience, it takes marquee names with national reputations to induce patrons to travel 20 to 30 miles of Southern California traffic to attend a performance. Most marquee name attractions will play larger venues with greater box office potential. BPATF will be able to book mid — week marquee attractions to fill a dark date in a tour but mid -week performances tend to draw local patrons. A 7:30 p.m. midweek performance will be more convenient for locals than county wide patrons. County wide patrons would be more inclined to travel to an 8 p.m. performance on a Friday or Saturday or Sunday matinees when marquee attractions play larger venues. There will always be fans of particular artists who will make the trip to see them regardless of the distance but we believe the majority of the Balboa Village Theatre patronage will come from Newport Beach. Mission and Vision Mission: "To establish and sustain a theatre for the presentation of the performing arts, film and other events for the most diverse audience possible, as often as possible. In this way, we will strengthen, nurture, enrich and enlighten the lives of those we touch and make our community a better place, one great performance at a time." Vision: "The Balboa Village Theatre is a multi -use facility that will present a variety of programming, primarily focused on live music performances, film screenings, special performance events, and educational programs that appeal to the tastes of the local community." The mission and vision statements are in line with those traditionally developed in the preliminary stages and often into the operational realities of performing arts facilities. Care should be taken to identify and focus on key issues related to the core mission of programming live performances and films. Special performance SS54 events and educational programs add value but seldom generate sufficient revenue and therefore are secondary to the core mission of programming. We believe that theatre management is a business that only maximizes revenue potentials when it is focused on presenting and fundraising. Our experience is that the business of education using performance facilities can be an effective fund raising theme but usually requires a subsidy often requiring a "friends" organization to assist in support. A "friends" organization can be a source of volunteers for ushering and other front of house duties, modest fundraising for educational or special programs and ambassadors of the Balboa Village Theatre to the Newport Beach community. The "friends" should be separate and distinct from the major fundraising activities of the Balboa Village Theatre Board of Directors. We suggest that initially, possibly for the first 3 -5 years of operation, that the focus be on presenting programs that can sell tickets including touring presentations for school groups. Performing arts classes should be developed with a separate budget as an ancillary activity that generates a profit for the theatre. Principal Strengths and Opportunities: The report states adequately the strengths and opportunities facing BPATF. We believe that there are some obstacles that need to be identified and discussed. Specifically, the location is not freeway adjacent and may be a deterrent for those not living in the community and fundraising may be more difficult than normal due to the history of the facility and the former failure to achieve success despite rather significant donations. We believe that a solid business plan depends on the dedication of both the Board and staff to both the presentation of excellent performing arts and entertainment and annual fundraising. To fundraise without a clear picture of what will be the end result will be a hard sell. We recommend that programming specifics may be necessary to achieve donation goals. Marketplace The location of the Balboa Village Theater on the tip of the Balboa Peninsula has strengths and weaknesses. Consultants often site a market for a live performance venue as a circle with a 30 mile radius with the venue located in the middle. Half the 30 mile circle for the Balboa Village Theatre is ocean. In addition, the SS55 consultants think the chances of attracting patrons from 30 miles or even 20 miles is questionable due to southern California traffic and the location of the Balboa Village Theatre at a significant distance from a freeway. This is particularly true when there will be minimal opportunities to present high visibility marquee name entertainers particularly on weekends due to the 300 seating capacity and marquee show costs. We suggest that the primary area of marketing be focused on 5 -10 miles from the venue. We believe that the key to success for the Balboa Village Theatre is to create a unique and intimate place to see live entertainment and film screenings. The Balboa Village Theatre should become a social center for the community with opportunities to see and be seen. A successful Balboa Village Theatre will fulfill the goals in the mission statement "strengthen, nurture, enrich and enlighten the lives" of the patrons, volunteers and local supporters. Programming Value in real estate is often attributed to three things, location, location, location. Similarly value in theatres that present live performances is attributable to three things, programming, programming, and programming. The AMS Balboa Village Theatre Business Implementation Plan projects a 5 year activity profile of 135 live performance /film screenings the inaugural season rising to 188 in the fifth year of operation. Additional use days for educational activities, meetings and social events would increase total use days from 204 in the inaugural year to 263 by the fifth year of operation. In the Consultant's opinion and experience, the AMS activity profile is ambitious for newly opened small venues. The number of performances may grow over time as theatre management learns the level of interest in the local market. AMS projects that BPATF will be the primary presenter of live performances with 70 presentations in the inaugural year rising to 119 in house presentations of live performances by the fifth year. To accomplish this goal, AMS recommends that BPATF engage a booking agent as an independent contractor budgeted at $31,326 the inaugural season rising to $55,562 by the fifth year to contact agents and managers, negotiate and contract a wide variety of live performances. Coincidentally, one of the Consultants reviewing the AMS Balboa Village Theatre SS56 Business Implementation Plan is currently acting as a booking agent (Program Consultant) for the 500 seat Bankhead Theater in Livermore, CA booking the 2014 -15 season. The Bankhead Theater booking contract is $30,000 for the season, confirming the AMS budget recommendation for a booking agent. There are a number of qualified booking agents that could serve BPATF. We believe the booking agent should either be knowledgeable about the Newport Beach market or willing to spend sufficient time in the locale to become familiar with the audience. There are also significant regional and national resources that would be available to BPATF once it begins programming including: • California Presenters, P.O. Box 19748, Sacramento, CA 95819 (916) 716 2349 admincoordinator @calpresenters.org. California Presenters is a statewide consortia of non - profit college and community theatres that holds an annual conference and facilitates communication between presenters on various issues. • Western Arts Alliance, 715 S.W. Morrison St., Suite 600, Portland, OR 97205 (503) 274 4729 www.westarts.org. Western Arts Alliance (WAA) is a non - profit 501 @ 3 association of presenters throughout the western United States and Canada. WAA convenes and annual booking conference in the fall where hundreds of presenters and agents meet to plan tours of live attractions for the following season. • Association of Performing Arts Presenters, 1211 Connecticut Ave. N.W., Suite 200, Washington DC (888) 820 2787 info @artspresenters.org The Association of Performing Arts Presenters (APAP) is a non - profit 501 @ 3 association that convenes a national booking conference every January in New York where thousands of presenters, agents and managers meet to plan tours for the following season. • Pollstar 4697 W. Jacquelyn Ave., Fresno, CA 93722 -6415 (800) 344 7383 www.pollstar.com Pollstar publishes a monthly hard cover and digital magazine covering the live entertainment industry including box office reports for commercial entertainment in arenas, outdoor venues, large and small theatres and clubs. Pollstar convenes an annual conference of promoters, agents and managers focused primarily on rock, blues, jazz and popular entertainment. Pollstar conferences rotate between Los Angeles, Las Vegas and Nashville. SS57 AMS and BPATF developed a series of production typologies based on a Programming Survey and presenting costs for BPATF presentations: • Documentary Films • Independent /Classic /Art House films • Family & Children's Films • Pop, singer /song writer and classic rock stars • Adult Contemporary, Alternative, Jazz, R &B, Bluegrass, Country, Folk and Classical Music • Rock Artists that appeal to a younger demographic • World Music • Local & Regional artists, tribute bands • OC Music Award Winners The Consultants concur with the production typologies developed by AMS and BPATF. In fact, both Consultants have presented hundreds of similar programs in various theatres. The Consultants have attached a Peer Review Programming Appendix with a pro forma season of potential BPATF presentations that have been recently booked by the Consultants in 400 and 500 seat theaters. It includes classic rock, pop, country, folk, popular music and family attractions. We also believe that there will be additional entertainment genres that could be presented in the Balboa Village Theatre. We have selected Second City as an example and attached additional information about it. Competition AMS has identified numerous performance venues in the primary market area of the Balboa Village Theatre and screened them as potential competition. We think this is true primarily if there is competition for a specific performer. BPATF has the opportunity to create a local unique place for entertainment designed to attract local community. A place where you can walk to the performance, a place where your friends will also be at the performance, a place where you know the performer will be excellent because that is the reputation of the venue. This can be a different kind of place from the competition listed and a special place for Newport Beach. Marketing Plan SS58 Venue information including. • Venue and Lobby Signage • Venue Information Brochures • Memberships • Sponsorships • Event Rental Marketing • Donor Forms • Volunteer Recruitment Signage • Season Brochures • Local ads These are traditional marketing, advertising and promotion activities for live performing arts facilities. AMS has identified six categories of "products" that BPAFT "will market to the public." • Tickets to live performance and film - We believe that all ticket prices should be set at the high end. The primary draw area is not one where price would appear to be a major issue if the performance is one that a patron wishes to attend. • Advertising /Promotion - Based on our experience we would suggest that advertising be primarily through email blasts, social media and if possible, through city communications such as newsletters and recreation brochures. We recommend trade deals of tickets for advertising in newspapers and radio. We would recommend that ticket discount promotions be avoided if they will negatively impact revenue to the venue. • Concessions - We agree that concessions should be contracted. • Membership - We recommend that BPAFT not discount ticket prices for members. Member benefits should include no cost items such as advance ticketing, meet and greet invitations, special events invitations SS59 when such events can be done with sponsorships without cost to the venue. • Sponsorships- The annual sponsorship target goal is ambitious but has been reached by other theatres. • Education program - If it is the desire of BPAFT and /or the City of Newport Beach to present RSSD classes there should be a financial analysis completed before any such agreement to ensure that class revenue covers direct costs and theatre overhead. The Balboa Village Theatre should not subsidize the Education Program. As an independent non - profit 501 © 3 organization, it must focus its efforts on ticket sales and fundraising to ensure its continued viability. • Event rental - We recommend that rental rates be competitive with other facilities. We also recommend that not - for - profit, educational and government organizations do not receive discounted rates. BPAFT needs to concentrate on being self- sustaining as its primary mission with assistance to other organizations as a secondary goal. Implementation Our experience has shown that whatever your time table the opening will be later. We suggest that contracts for performances be negotiated to begin at least 3 -4 months after construction is expected to be completed. This recommendation is based on our experience of construction and opening several performance facilities in Southern California. To sign performance contacts obligates you to pay. Once signed it also gives a contractor a leveraged position ....... We're late through no fault of our own and we can't finish as agreed unless you are willing to authorize overtime ". Staffing Plan AMS has developed a Balboa Village Theatre staff plan of seven full -time and three part -time positions plus a contracted booking agent: • Chief Executive Officer ssso • Development and Sponsorships Director • Production /Artist Relations Director • Marketing Director • Finance Manager • Box Office /Front of House /Membership Sales Manager • Facilities and Maintenance Manager • Two part -time box office /customer service representatives • One part -time Education Program Manager Additional part -time stage hands and front of house staff would be engaged on a per show basis. The AMS staffing recommendation is similar to the personnel roster of similar size theatres. The job descriptions, staffing and compensation levels are in line with industry standards. The Peer Review Consultants recommend that consideration be given to initially contracting for marketing, box office and finance. There may be local firms with the knowledge, experience and staff to provide broad, in depth marketing, box office and finance services rather than full -time employees. Governance This section is consistent with normal goals for Board members to financially contribute and assist in fundraising activities. Non - profit board membership is subject to the rule of 3 G's. (Give money, Get money or Get off the board). We would suggest that members be selected on the basis of their leadership in the community in addition to their ability to contribute. The job description of Board members should be very clear that their primary responsibility is to raise funds followed by broad oversight of the management of the venue and the recruitment of additional supporters. We agree with the recommendation that Board members be required to donate $10,000 or more annually to support the operation and programming of the Balboa Village Theatre. Board members should not be involved in show selection or negotiation. When programming is done by committee there is little, if any, accountability. Since programming is a primary BPATF income base accountability is important. SS61 Partnerships AMS identities several partnership opportunities for BFATF: • BPATF Presents -The Peer Review Consultants have decades of experience in presenting and programming partnerships and concur with this recommendation. One of the Peer Review Consultants is currently serving as a booking agent for the 500 seat Bankhead Theater in Northern California working with the theatre staff to book performances for the 2014 -15 season. Many of the Bankhead Theater presentations would be appropriate for the Balboa Village Theatre and are listed in the Peer Review Programming Appendix. • Rental Partnerships -The Peer Review Consultants have decades of experience in rental partnerships with local performing arts groups. We concur with the AMS recommendation of rental partnerships with the Newport Beach Film Festival (NBFF), Explore Ocean and the Newport Elementary School as long as direct theatre costs and overhead are covered. We also suggest BPATF explore rental partnerships with other organizations as co- promotions for presenting live performances. • Education Program -AMS recommends that BPATF work in partnership with the Newport Recreation & Senior Services Department (RSSD) to develop an Education Program. We have worked with Parks & Recreation Departments in Cerritos, La Mirada and Thousand Oaks presenting student performances and touring professional productions to student audiences in four southern California Theatres and concur with this recommendation. We also believe BPAFT can provide elementary and secondary students with educational opportunities as both performers and patrons. We recommend two levels of educational programming: o BPATF in partnership with RSSD provide classes in "acting, musical theatre, technical theatre, dance, film and vocal training." Classes and rehearsals can be held in City facilities provided by RSSD. Student performances can be scheduled at the Balboa Village Theatre. Care should be taken that all of the theatre's expenses SS62 and overhead be built into the budget and fee schedule for performing arts and film classes. o BPAFT presents professional touring educational programs. Examples of recent presentations in comparable theatres to the Balboa Village Theatre include: • LUMA Science of Light • Einstein (One man show) • Jason and the Argonauts: Visible Fiction • Anne of Green Gables • The Notion of Motion • Watt's Current • Structures • Toying with Science • Let's Go Science • Super Scientific Circus • Food and Beverage- AMS recommends that BPATF contract with a local vendor for concessions and catering. The Peer Review Consultants concur with this recommendation and have contracted food and beverage services at the theatres they managed. • Artist Accommodations- AMS correctly points out that BPATF will be responsible for overnight accommodations of touring performing artists. Touring contracts typically consist of two parts, i.e. the first part lists the time /date of performance, fee, other considerations and a signature block and the second part or rider which spells out technical requirements, catering and overnight accommodations for the artists. The Peer Review Consultants concur with the AMS recommendations for Artist Accommodation. Overnight artists accommodations are subject to negotiation when contracting performances. • Joint Marketing- the Peer Review Consultants concur with the AMS recommendations for joint marketing with other local performance organizations, Balboa Village businesses, the City of Newport Beach and Visit Newport Beach. We have a long history of successful, cost effective SS63 joint marketing with other organizations in the promotion of theatre performances. Principal Challenges AMS identifies three principal challenges in the Balboa Village Theatre Business Implementation Plan. The Peer Review Consultants have added a fourth principal challenge, i.e. location. • Contributed Income: AMS cites a lack of public and donor confidence due to the failure of previous efforts over the past 18 years. We concur that this is and will continue to be the primary fundraising challenge faced by the BPATF Board and Staff until confidence in the successful campaign to renovate and reopen the Balboa Village Theatre is restored. One of our consultants has personal experience in fundraising for new performing arts theaters. The early money is the hardest to raise. No one wants to give to a project that might not get off the ground. In our experience, fundraising takes off when potential donors see a ground breaking and beginning of construction. • Programming Mix and Attracting Artists: AMS identifies programming as a second challenge to BPATF. We believe that programming will be both an ongoing challenge and an exciting opportunity. Successful programmers rely on a network of relationships with artists, managers, agents and other programmers. BPATF has taken the first step in successful programming by "completing an extensive programming survey." The second step will be to contract with an experienced booking agent initially and to develop programming skills and experience for in house staff to ultimately take over booking responsibilities. • Parking: AMS identifies parking as the third significant challenge for BPATF. We concur with AMS recommendations to mitigate parking challenges including valet parking, VIP parking and shuttle service. Summer month parking is identified as a challenge although summer is the slow season for live in door performances. The primary season for SS64 the Balboa Village Theatre will be September — May roughly equivalent to the school season. • Location: The Peer Review Consultants have added location as a fourth principal challenge for BPAFT. The location of the Balboa Village Theatre has both strengths and weaknesses. If the City of Newport Beach were to decide to build a new performing arts center, the Peer Review Consultants would recommend a more central location with easy freeway access. The Balboa Village Theatre location at the end of the Balboa peninsula is not commuter convenient. Half the market area is ocean. Although we would not recommend the construction of a new performing arts theatre on Balboa peninsula, we understand the desire to renovate and reopen the historic Balboa Village Theatre. We understand that the City of Newport Beach owns the Balboa Village Theatre and wants to restore it as a community asset. We know that the Balboa Village Master Plan includes restoration of the Balboa Village Theatre as a "catalyst for economic development" of Balboa Village. We agree that a reopened Balboa Village Theatre would contribute "to a revitalized Balboa Village." In fact, the four theatres that we have managed in Southern California were built by Redevelopment Agencies with the purpose of revitalizing blighted areas. That said, the City of Newport Beach should weigh both the opportunities and challenges presented by restoring and reopening the Balboa Village Theatre. Financial Analysis AMS provides an extensive financial analysis covering a variety of topics. • Capital Funding including both a $2 million City of Newport Beach (lesser) and $2 million BPATF (lessee) investment. The Peer Review Consultants are not architects or general contractors and consequently do not comment on the proposed capital costs to convert the Balboa Village Theatre from its current condition into a live 300 seat performance venue. • 50 year BPATF lease agreement with the City of Newport Beach at a rate of 2.5% net adjusted gross ticket revenue (NAGR) SS65 • $500,000 pre- opening implementation budget • Five year pro forma operating estimate for the inaugural season: ■ $1,264,800 inaugural earned revenue ■ $485,600 contributed revenue ■ $1,809,300 operating expense plus contingency ■ $58,900 a net loss before depreciation ■ $20,500 depreciation ■ $79,400 net and loss after depreciation. Projected revenue grows faster than expense through the 5 year estimate resulting in a modest surplus of $4,800 after depreciation in the fifth year of operation. AMS summarizes their pro forma operating estimate by stating `The third year post- opening is considered the base stable year of operation." The Peer Review Consultants have opened four performing arts theatres in Southern California and found the third year to be in fact a base stable year of operation. The Inaugural season tends to have elevated revenue and expenditures. Inaugural year revenue is enhanced by the excitement of opening a new facility. It is not uncommon for patrons to subscribe to multiple series. Grand opening expenditures cause the Inaugural Year expenses to be higher. Patron and donor fatigue often sets in during the second year, when the initial Grand Opening excitement wears off and patrons become more discriminating in their selection of performances to attend. By the third year patrons and donors have settled into their level of attendance and support of the performing arts. This attendance pattern has been noted in other performing arts facilities across the country. AMS groups operating revenue into various categories. • Ticket Revenue rising from $659,100 year 1 to $1,112,300 year 5. • Ancillary Revenue rising from $58,100 year 1 to $75,800 year 5. • Sponsorships rising from $223,000 to $362,100 year 5. • Ticketing and Facility Fees rising from $139,400 to $196,000 year 5. ss66 • Rental Income rising from $157,000 year 1 to $216,100 year 5. • Rental Additions /Chargebacks moderately decreasing from $6,700 year 1 to $6,200 year 5. • Education Program rising from $21,500 year 1 to $42,800 year 5. • Total Operating Earned Revenues rising from $1,264,800 year 1 to $2,011,300 year 5. The Peer Consultants know that any 5 year projection of revenue is based on a number of programming assumptions including the frequency of performances, attendance levels, sponsorships and donations. BPATF will no doubt modify the revenue projections based on actual experience in programming the theatre. AMS recommends contracting for concessions and catering. The Peer Review Consultants have contracted for concessions and catering in the theatres they managed and concur with the AMS recommendation. AMS notes that parking is an "important source of revenue for many theatres across the country." This is true however there are two ways at looking at parking. • Free guaranteed parking can be a potent marketing tool when promoting attendance at live performances. The Peer Review Consultants managed two Southern California theatres with free parking, i.e. the Cerritos Center for the Performing Arts and the La Mirada Theatre for the Performing Arts. Both theatres included free parking as one of the perks for purchasing tickets for performances. Audience surveys for other theatres indicate that free parking is considered a benefit. • Paid parking can be an important revenue stream to subsidize theatre operations. One of the Peer Review Consultants also managed a Southern California performance facility that charged for parking, the Thousand Oaks Civic Arts Plaza ( TOCAP). TOCAP consists of the ss67 Thousand Oaks City Hall, the 1,800 seat Kavli Theatre, 400 seat Scherr Forum Theatre and a parking structure. The parking structure provides free parking during the day for staff and people coming to the city hall. In the evening and on weekends an $8 parking charge is leveled at patrons. Before TOCAP opened there was no paid parking throughout the City of Thousand Oaks. After TOCAP opened residents accepted the parking charge for performances knowing that it was subsidizing the operation of the theatres. The Peer Review Consultants recommend that BPATF explore "a mutually agreeable parking agreement with an area vendor or the city." AMS projects $329,600 in corporate and individual sponsorships by the third year of operation. In our experience corporate sponsorships are usually tied into marketing opportunities for the corporation rather than philanthropy. The majority of donations come from individuals not corporations. AMS recommends a $4 transaction fee for phone and internet transactions and a $4 ticket facility maintenance fee on all ticket sales by phone, internet or at the box office. The Peer Review Consultants added similar fees to the price of tickets in the venues they managed. One word of advice is to not label the $4 ticket facility maintenance fee as a maintenance fee. That implies that it will be used solely to maintain the theatre. Simply labeling it a $4 facility fee will provide theatre management with flexibility in the use of those funds. It should also be noted that some attractions will be presented as a percentage of box office revenue. Percentage deals should be based on the Net Adjusted Gross Box Office Receipts ( NAGBOR). NAGBOR is derived by deducting credit card fees, group sales commissions and facility fees from the sale of tickets prior to the division of box office revenue between the theatre and attraction. AMS recommends facility industry wide rental rates based on 10 hour performance days and 4 -hour non - performance uses. The Peer Review Consultants used similar blocks of time for a couple of reasons. • The 10 -hour performance day rental rate tends to focus the attention of rental groups so that they plan to use time on stage efficiently and not resort to 12 hour or longer tech and rehearsal periods prior to ] performance. Management should be flexible to some extent depending on the complexity of a production with an additional hourly rental rate for long performance days. • The 4 -hour non - performance rental rate corresponds to the minimum hourly call for stage hands. If stagehands are called for an hour long event, they should be paid for a 4 -hour call. If the call lasts longer than 4 hours, an additional hourly rate for both rent and stage labor should be assessed. AMS recommends a book transfer fee whereby BPATF pays rent to itself for its own presentations. The Peer Review Consultants used book transfer fees when they presented performances in the theatres they managed. AMS recommends rental additions and chargebacks which are industry standard. AMS recommendations for an Education Program are preliminary. The Peer Review Consultants recommend that BPATF focus on its primary mission of presenting performances while developing an Education Program with RSSD. AMS groups operating expenses into various categories: • Presenting expenses will vary depending on the scope of the season and number of in house presentations. • Personnel & Administration expenses are based on 7 full -time and 3 part -time employees. The Peer Review Consultants recommend that consideration be given initially to contracting for some full -time staff positions to reduce overhead and maintain management flexibility as the annual programming level evolves over the first several seasons. • Building Operations consists of "security, utilities, cleaning, maintenance, and non - capital maintenance and repairs" are calculated on a per square foot basis. Insurance is calculated on estimated attendance. ssss • Contingency covers unforeseen expenses which often accompany building renovations. We recommend that the BPATF investigate whether or not the California Possessory Interest Tax would apply. Conclusion The Peer Review Consultants have no significant disagreements with the findings or conclusions of the AMS report. There are a number of issues primarily related to the future operations and fundraising plan that we believe need specific consideration. Those issues have been discussed in more detail throughout this report and are delineated here as bullet points: • The primary goal is to manage a self- sustaining business. • Programming and fundraising are essential to make and keep the Balboa Village Theatre financially viable. • The venue should present excellent quality shows that appeal to the market. • Marketing should be primarily directed to businesses and residents within a 5 to 10 mile radius. • Programming is of paramount importance and needs to reflect the taste of the people within the primary draw area. Balboa Village Theatre management should consider a wide variety of high quality performing arts and entertainment programming. • Initially do not try to be all things to all people. Be the best at what you choose to do. • Competition will be reduced if the venue can develop a reputation for excellence and become a place to meet and be seen and entertain. SS70 • Allow additional time from the proposed end of construction to ensure that the opening will not be delayed by construction issues. • Initially use contract or part -time employees whenever possible. • Board leadership in fundraising is essential. • Select Board Members that contribute funds and also can provide leadership in the recruitment of other supporters. • Initially refrain from any multi -use contracts or agreements that do not show an adequate profit margin for the venue. AMS has developed an ambitious Balboa Village Theatre Business Implementation Plan based on: • Venue Design • Stakeholder Interviews • Comparable Facilities Case Studies • Potential Audience Survey Report • Market Area Characteristics and Lifestyle Analysis • Primary Market Area Survey Report • Competitive Inventory • Implementation Timeline • Pro -Forma Operating Model The Balboa Village Theatre Business Implementation Plan is predicated on a number of fundraising and programming goals: • BPATF raises $2,000,000: • Theatre systems /equipment ($800,000). • Pre - opening operations ($500,000) • 3 -Year Operations & Support Reserve ($700,000). • City of Newport Beach invests $2,000,000 in the Balboa Village Theatre building /shell structure. SS71 • BPATF Board of Directors consisting of 12 members each of whom pledges $10,000 annually for a total annual Board contribution of $120,000 • BPATF raises annual sponsorships: • Year 1-$223,000 • Year 2-$223,000 • Year 3- $329,600 • Year 4- $329,600 • Year 5 -$ 362,100 BPATF presents a series of live performances and film showings: • Year 1 -23 Film Media, 70 Live Performance, 4 Events= Total 97. • Year 2 -23 Film Media, 70 Live Performance, 4 Events= Total 97 • Year 3 -29 Film Media, 94 Live Performance, 6 Events= Total 129. • Year 4 -29 Film Media, 94 Live Performance, 8 Events= Total 131. • Year 5 -29 Film Media, 119 Live Performance, 8 Events= Total 156. In the Peer Review Consultant's opinion, the AMS Balboa Village Theatre Business Implementation Plan is based on both an ambitious fundraising campaign and annual programming schedule. The affluent, well- educated demographic of Newport Beach and surrounding communities bodes well for the support of a live performance facility in Newport Beach. SS72 Appendices • Appendix A: Venue Design -The Peer Review Consultants visited the site of the existing Balboa Village Theatre shell and reviewed the design features, section and floor plans for two seating configurations provided by John S. Fischer and Associates and concur with their recommendations. • Appendix B: Stakeholder Interviews -The Peer Review Consultants agree with the selection of both local and county wide stakeholder interviews conducted by AMS. • Appendix C: Comparable Facilities Studies -AMS identified four performing arts facilities that are comparable to the proposed Balboa Village Theatre. The case studies of the four comparable performing arts facilities highlight the importance of both programming and fundraising. We note that three of the four comparable facilities selected by AMS ran a deficit for the FY 2010 -2011 season. o Westhampton Beach Performing Arts Center, Southampton NY (425 seats, non - profit owned and operated, 11 full -time staff plus hourly per event. Programming- Concerts, Theater, Film, Extensive Educational Program) • FY 2010 -11 Revenue $3,517,372 • FY 2010 -11 Expenses $3,134,566 • Earned Revenue 75% of operating expense. o Lyric Theatre, Stuart FL (500 seats, non - profit owned and operated, 10 full -time staff plus hourly per event. Programming - Concerts, Events, Film, Education Programs, Rentals) • FY 2010 -11 Revenue $2,203,746 • FY 2010 -11 Expenses $2,457,420 • Earned Revenue 67% of operating expense. SS73 o Fairfield Theatre Company, Fairfield CT (225 seats, municipally owned and non - profit operated, 12 full -time staff plus hourly per event. Programming- Concerts, Limited Theater and Film, Education Program) • FY 2010 -11 Revenue $2,676,042 • FY 2010 -11 Expense $2,687,036 • Earned Revenue 77% of operating expense. o Napa Valley Opera House, Napa, CA (486 seats, non - profit owned and operated, Staff 7 full -time plus hourly per event. Programming- Concerts, Events, Comedy, Film, Limited Educational Program ) • FY 2010 -11 Revenue $1,726,658 • FY 2010 -11 Expense $2,479,346 • Earned Revenue 40% of operating expense. The four theatres AMS selected for the Balboa Performing Arts Theatre Foundation Comparable Facilities Case Studies underscore the importance of fundraising in the continued operation and programming of the Balboa Village Theatre. • Appendix D: Potential Audience Survey Report -The Peer Review Consultants reviewed the AMS Potential Audience Survey Report. The Peer Review Consultants have done similar audience surveys over the last four decades in Southern California and have found similar results. • Appendix E: Market Area Characteristics and Lifestyle Analysis -The Peer Review Consultants concur with the Market Area Characteristics and Lifestyle Analysis. • Appendix F: Primary Market Area Survey Report- AMS conducted a primary market area survey within a 30 -mile drive of the Balboa Village Theatre. There are 1,757,000 households located in the 30 -mile drive area of the Balboa Village Theatre. 2,263 respondents were recorded with the following demographic characteristics. SS74 o Age — 45+ 67.2% o Gender— Female 62.7% o Children in Household— No 73.7% o Education —College Degree 68.8% o Race /Ethnicity —White (Non- Hispanic) 68.4% o Income - $100K or less 56.9% Programming preferences for the surveyed respondents ranked by order of interest in live performances include: o Classic Rock o Popular /Top 40 o Other Music Concert o Classical o Bluegrass, folk, country o Indie Rock o Jazz o Alternative o R & B o Urban /Electronic o Adult Contemporary o World Music o Singer /Songwriter o Latin o Family- focused music The Peer Review Consultants note the absence of several programming genres in the AMS pro forma performance schedule of the Balboa Village Theatre including theatre and dance. The technical constraints of the renovated Balboa Village Theatre with a lack of wing space will limit theatre and dance and certainly make the presentation of music the primary focus of programming. There are however, opportunities to present other kinds of performances. We will add an appendix illustrating the programming potential of a performance genre not listed in the programming preference survey, i.e. comedy. SS75 Programming preferences for the surveyed respondents ranked by order of interest in film include: • Contemporary /first — run films • Independent Films • Other film screenings • Classic films • Films for the whole family • Children's films • Foreign films Based on their combined 5 decades experience operating, managing and programming live theatres in the same market area as the Balboa Village, the Peer Review Consultants concur with the Primary Market Area Survey Report. • Appendix G: Competitive Inventory- The Peer Review Consultants are familiar and concur with the listing of the primary competitors to the Balboa Village Theatre. Both Peer Review Consultants have managed, operated and programmed theatres listed as secondary competitors, i.e. La Mirada Theatre for the Performing Arts and Cerritos Center for the Performing Arts. Based on their knowledge and experience, the Peer Review Consultants concur with the Competitive Inventory developed by AMS. • Appendix H: Implementation Timeline -Both Peer Review Consultants have direct experience in the construction, opening and inaugural year programming of live performing arts theatres. They concur with the Implementation Timeline as a "WORKING DRAFT (subject to change). Constructions timelines particularly renovations of older existing theatres often come across issues that can increase the cost and extend the timeline. • Appendix I: Pro Forma Operating Model -The Peer Review Consultants reviewed the Pro Forma Operating Model and found it to be consistent with the operating models of similar size performance facilities. SS76 Peer Review Appendices Peer Review Programming Appendix The Peer Review Consultants have added an appendix listing a number of potential future performances at the Balboa Village Theatre. The Consultants have booked these performances in similar size theatres. There are many moderately priced artists and groups who would be available for booking in a 300 seat theatre in Newport Beach. It should be noted that the fees listed in the Peer Review Programming Appendix are negotiable subject to day of week, on route pick up dates and the box office potential of 300 seats. Sample Program The Peer Review Consultants have selected Second City, a national touring comedy improv company that we have booked multiple times with strong audience response as an example of the kind of non - musical programming that could be included in the renovated Balboa Village Theatre season. The consultants have spoken to the agent representing Second City who indicated interest in bringing Second City to a renovated Balboa Village Theatre. Based on our experience, we believe that specific examples of potential programming will be a key component of the fundraising campaign. Donors will want to know what kind of performances they can expect when the Balboa Village Theatre reopens. As one example, we have included the following information for Second City which typifies the kinds of information available for national touring attractions. • Second City History • Second City Alumni Roster • Second City Offer Sheet • Second City Tech Rider Peer Review Consultant Resumes The Peer Review Consultants have attached their resumes for reference to indicate their experience in operating and programming live performing arts theatres in Southern California. SS77 June 10, 2014 LIDO THEATRE Addendum to the Balboa Village Theatre Business Implementation Plan Peer Review After completing the Peer Review of the Balboa Performing Arts Theatre Foundation (BPATF), Balboa Village Theatre Business Implementation Plan, the Peer Review Consultants were asked to perform an additional scope of work analyzing the impact of the recent announcement by Lido Live that it would begin presenting concerts at the Lido Theatre. The Peer Review Consultants researched the Lido Theatre on the internet, reviewed an article in the Sunday June 8, 2014 Los Angeles Times titled "Lido Theatre to host live concerts;' interviewed Tristan Ritter asset manager for the Lido Theatre's owner Fritz Duda Company by phone and met with Tristan Ritter on Monday, June 9, 2014 to tour the Lido Theatre and surrounding area and discuss future plans for the presentation of live concerts at the Lido. It should be noted that AMS, Inc. the consultants who formulated the Balboa Village Theatre Business Implementation Plan identified the Lido Theatre as primary competition for the Balboa Village Theatre in Film /Media not in Live Performance. In Appendix G: Competitive Inventory table 1: Primary Competitors, AMS Inc. lists the following: • Organization — Regency Theatres • Location — Newport Beach • Distance —Two Miles • Venue — Lido Theatre • Capacity -622 seats • Programming /Presenting — Independent and foreign film; Surf film series • Rental Events — N/A • Other— Historic Venue; Often featured in movies and commercials; Dolby Sound; Partner with Newport Beach Film Festival, Ticket Prices $7.50- $10.50 The Lido Theatre opened in 1938 and according to the Regency Theatre website has been restored with Catalina Tile, original poster cases, a small enclosed stand alone box office in front of the theatre and a Grand Marquee with neon lights. The Lido Theatre represents the art deco glamour of movie theatres in the 1940's rather than the current box like configuration of today's multi - plexes. As a single screen theatre, the Lido is no longer financially viable solely as a movie theatre which has motivated the Lido Live management to begin presenting live concerts in addition to films. In the L.A. Times, Tristan Ritter stated "Lido Theatre is loved by all ... We're excited to get in and reestablish it as a premier movie house and live music venue in Orange County." The Peer Consultants surmise that AMS Inc. was unaware of SS78 plans to begin presenting live concerts at the Lido Theatre and consequently did not identify it as a primary live performance competitor to the Balboa Village Theatre in the Balboa Village Theatre Business Implementation Plan. In our conversations with Tristan Ritter by phone and in person, we found her to be friendly, forthcoming and very knowledgeable about the Newport Beach audience potential. She was familiar with and supportive of the effort to renovate and reopen the Balboa Village Theatre. She did not consider the Balboa Village Theatre to be a potential competitor to Lido Live due to its' limited seating capacity of 300 which is less than half of the Lido Theatre. She also thought parking and traffic would be a challenge for the Balboa Village Theatre and that it would draw patrons who could walk to the theatre. One of the issues we discussed in the Peer Review of the Balboa Village Theatre Business Implementation Plan was the location of the theatre. We stated that location is a principal challenge for the BPATF. We noted that if the City of Newport Beach were to build a new performing arts center, we would recommend a more central location and that the Balboa Village Theatre is not commuter convenient. As stated in the Los Angeles Times article, the current operator of the Lido Theatre, Regency Theatres will lose its' lease on the Lido Theatre at the end of June. A new operator, Lido Live will take over the Lido Theatre and begin booking live performances in addition to its customary fare of first run movies and Surf films. Although Lido Live management does not consider the Balboa Village Theatre to be a significant competitor, Lido Live could be a significant competitor to the Balboa Village Theatre just by its very existence as an alternative concert venue. The Lido Theatre has several significant competitive advantages to the Balboa Village Theatre: • Location: The Lido Theatre has a more convenient location close to the intersection of California HWY 1 and Newport Beach Blvd. • Seating Capacity: Currently the Lido Theatre has 622 seats (410 seats in the orchestra and 212 in the balcony) with over twice the box office potential than the Balboa Village Theatre for films. Lido Live management forecasts 350 orchestra seats and 189 balcony seats after the installation of a temporary stage, sound and lights for concerts. Lido Live management plans to replace the current seats with new ones that have arms that fold down capable of holding both food and drink. • Parking: Lido Live has access to over 400 convenient parking spaces. • Performance History: Unlike the Balboa Village Theatre that has been closed for years, the Lido Theatre has been continuously operated as a movie theatre that has also presented occasional concerts in the past. The Lido has also presented charity events raising hundreds of thousands of dollars for local charitable groups. • Financing: The Lido Theatre is privately owned and not reliant on fundraising. The Fritz Duda Company that owns the Lido Theatre also owns several other adjacent buildings and parking lots and is committed to the long term development of the entire site. SS79 • Current state of the building: The Lido Theatre is in a very good and well maintained condition. Lido Live management plans on some cosmetic upgrades such as new carpet and paint but there is no need to make the kinds of structural enhancements required of the Balboa Village Theatre. • Profit vs. Non - Profit. The Lido Theatre is and will be operated as a private, profit making venue by an owner operator with significant financial resources. The Balboa Village Theatre will be a non - profit 5010 3 organization reliant on fundraising for both capital improvements and annual operating subsidies. Fundraising was already identified by AVIS Inc. as a challenge due to the long history of raising funds with no progress to actual renovation of the Balboa Village Theatre. Now that Lido Live has announced plans to bring live concerts to Newport Beach, future potential donors to the Balboa Village Theatre may question the necessity of having two live performance venues located near to each other. • While the Lido will not be searching specifically for donors or doing fundraising events for itself they do plan to sell the seats in the balcony (approx 189 seats) on a yearly basis to those willing to pay a membership fee that will entitle them to first choice of seats and other amenities to be determined. The annual membership fee will generate capital for enhancements to the Lido Theatre. The Peer Review Consultants consider the sale of memberships as a private fundraising plan similar to social memberships at a country club. This "balcony club" may well compete for donor money with the Balboa Village Theatre by providing well healed patrons with an opportunity to join a membership club at the Lido. • Programming: One of the partners in Lido Live has extensive connections in the music industry. Plans to bring national marquee acts are already being formulated. Headliners could be appearing at the Lido Theatre within a few weeks. Current Lido Live plans call for a couple of concerts a month increasing to once a week in the future. Lido Live will concentrate on 80's style music appealing to patrons over 21, middle aged and older. They do not intend to present rap or punk music. Food, beer and wine will be available for consumption during performances. • The Lido also plans to bring in local talent from throughout the State of California for the express purpose of providing new talent with a performance venue. It is probable that such new talent would be similar to the level of talent that would be cost effective for presentation at the Balboa Village Theatre. • The Lido Live management stated that the Lido will also host "local philanthropic events, book readings and perhaps even graduations.' • According to the Regency Theatres website, "the Lido is also home for premieres of skateboarding, skating, and skimboard films. Regency also works extensively with the Newport Beach Film Festival (NBFF) and the Lido is a location for prime features of the festival, which is held each April. Together, the Lido and NBFF also present cinema treasures, such as a yearly Christmas screening of "It's a Wonderful Life" to families and children." It is Cy,-8 our understanding that the new Lido Live management will continue the close working relationship with NBFF. Gregg Schwenk, co- founder of the NBFF stated that "the Newport Beach Film Festival will continue to work with the theater during the festival, off season and for Orange County Film Society screenings. The Lido Theatre has always had a special place in our heart as a festival" he said "It's a beautiful theater, it's a unique location and we think that the new direction is definitely going to take it to the next level" Since the Balboa Village Theatre Business Implementation Plan states BPATF "will present a series of live performances, special events and film screenings, the later in partnership with a secondary organization, potentially the Newport Beach Film Festival (NBFF);' we suggest that BPATF confirm the level of interest by NBFF in presenting films at the Balboa Village Theatre. • The Lido Live management also indicates that they will continue to be available for rentals for both movie /TV shoots and miscellaneous performances or activities. Although the management of Lido Live is supportive of the effort to renovate and reopen the Balboa Village Theatre, its very presence as a live concert promoter in Newport Beach will impact the kinds and quantity of programming available to the Balboa Village Theatre in the future. Local audiences will have the opportunity to choose between live performances at both theatres. Both the Lido and Balboa Village Theatres can co -exist in Newport Beach with the Lido reliant on profit making operations and marquee name programming and the Balboa Village Theatre reliant on annual fund raising and less expensive presentations. SS81 ATTACHMENT C gkkworkc. BALBOA THEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworks 2355 Main St., Suite 220 Irvine CA. 92614 949 - 250 -1500 SS82 BALBOA THEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE- UPDATE gkk rkE SPECIFICATIONSECTION TOTAL -CORE& SXEEL _E pj CT COST COST /SF TOTAL-TENANT IMPROVEMENTS � PROJECT CUSE COST /SF TOTAL- SITEWORK_ ppOIER COST / SF GRAND TOTAL PpOIER COST COST /SF DIVISIONS - GENERAL REQUIREMENTS $ 155,650 ]% $ 24.31 $ 72,825 3% $ 12.15 $ - 0% $ - $ 233,425 30% $ MAE DIVISION 2 SITEWORK $ 64,174 3% IS 10.02 $ - 0% $ - $ 26,950 1% $ 4.21 $ 91,124 4% IS 14.23 DIVISION 3- CONCRETE $ 550,830 24% $ 86.01 $ G% $ - $ - 0% $ - $ 550,830 24% $ 86.01 DIVISION 4- MASONRY $ 107,996 5% $ 16.86 $ - 0% $ - $ - 0% $ - $ 102,996 5% $ 1686 DIVISION 5 -METAL $ 324,844 14% $ 50.73 $ 3,500 0% $ 0.55 $ - 0% IS - $ 328,344 14% IS 51.27 DIVISION 6- WOOD AND PLASTICS $ 5,865 0% $ 0.92 $ 4,500 0% $ 0 .70 $ - 0% $ - $ 10,365 0% $ 1.62 DIVISION 7 - THERMAL AND MOISTURE PROTECTION $ 106,922 5% $ 16.70 $ 4,529 0% $ 0.73 $ - 0% S - $ 111,500 5% $ 17.41 DIVISIONS - DOORSAND WINDOWS $ 90,110 4% $ 14.07 $ 4,650 0% $ 0.73 $ - 0% $ - $ 94,260 4% IS 14.80 DIVISION 9- FINISHES $ 194,894 8% $ 30.43 $ 54,044 2% $ 8.44 $ - 0% $ - $ 248,938 11% $ 38.82 OIVISION 10- SPECIALTIES $ 12,846 1% $ 2.01 $ 2,758 0% $ 0.43 $ - 0% $ - $ 151604 1% $ 2.44 DIVISION 11- EQUIPMENT $ - 0% $ - $ 40,000 2% $ 6.25 $ - 0% $ - $ 40,000 2% $ 6.25 DIVISION 12- FURNISHINGS $ 0% $ $ 0% $ - $ - 0% $ - $ - 0% $ - DIVISION 13- SPECIAL CONSTRUCTION $ - 0% $ - $ 25,000 1% $ 3.90 IS - 0% $ - $ 25,000 1% $ 3.90 DIVISION 14 CONVEYING SYSTEMS $ - 0% $ - $ - 0% $ - $ - 0% $ - $ - 0% IS DIVISION 21- FIRE SUPPRESSION $ 48,030 2% $ 7.50 $ G% $ - $ - 0% $ - $ 48,030 2% $ 7.50 DIVISION 22- PLUMBING $ 64,040 3% $ 1000 $ 25,616 1% $ 4.00 $ - 0% $ - $ 89,656 4% $ 14.00 DIVISION23- HEATING, VENTILATION, AIR CONDITIONING $ 224,140 10% $ 35.00 $ - 0% $ - $ - 0% $ - $ 224,140 10% IS 3500 DIVISION 26- ELECTRIC4LSYSTEMS $ 192,120 8% $ 30.00 $ 0% $ $ - 0% $ - $ 192,120 8% $ 30.0 DIVISION 31- EARTHWORK $ 17,456 1% $ 2.73 $ 0% $ - $ - 0% $ - $ 17,456 1% $ 273 DIVISION 32 EXTERIOR IMPROVEMENTS $ - 0% $ - $ - 0% $ - $ 34850 2% $ 5.44 $ 34,850 2% IS 5.44 DIVISION 33 -DU TIES $ 0% $ $ 0% $ $ 98,500 4% $ 15.38 $ 98,500 4% $ 1538 SUBTOTALCONSTRUCTION COSTS $ 2,159,966 94% $ 337.28 IS 242,422 11% $ 37.85 $ 160,300 7% $ 25.03 $ 2,562,688 111% $ 400.17 INSURANCE $ 21,600 1% $ 3.37 $ 2,424 1% $ 0.38 IS 1,603 1% $ 0.25 $ 25,627 0% $ 400 BONDS $ 32,723 1.5% $ 5.11 $ 3,673 1.5% $ 0.57 $ 2,429 1.5% $ 0.38 $ 38,925 0% $ 606 FEE $ 88,572 4% $ 13.83 $ 9,941 4% $ 1.55 $ 6,573 4% $ 1.03 $ 105,086 0% $ 16.41 TOTAL CONSTRUCTION COSTS $ 2,302,861 IS 359.60 $ 258,460 $ 40.36 $ 120,905 $ 26.69 IS 2,732,225 $ 426.64 CONTINGENCY(DeSIgn & ConStmRlon) $ 184,229 8% $ 28]] $ 20,677 8% $ 333 $ 13,672 8% $ 2.13 $ 218,578 0% $ 34.13 ESCALATION $ 74,613 3% $ 11.65 $ 8,374 3% $ 1.31 IS 5,537 3% $ 0.86 $ 88,524 0% $ 13R2 TOTAL CONSTRUCTION COSTS $ 2,561,702 IS 400.02 $ 287,511 $ 44.90 $ 190,115 $ 29.69 $ 3,039,327 $ 474.60 SO" COSTS A/E DESIGN FEES $ 102,468 4.0 %.$ 16.00 $ 11,500 4.0% $ 1.80 $ 7,605 4.0% $ 1.19 $ 121,573 0% $ 18.98 PLAN CHECK FEES $ - 0.0% $ - $ 0.0% $ - $ - 00% $ - $ - 0% $ - PERMITS $ - 0.0% $ - $ - 0.0% $ - $ - 0.0% $ - $ - 0% $ - PRINTING &ADVERTISING $ 5,328 03% $ 0.83 $ 598 03% $ 0.09 $ 395 0.2% $ 0.06 $ 6,322 0% $ 0.99 PRECONSTRUCTION TESTING OF ONSOE CONDITIONS $ 13,347 CR% $ 2.08 $ 1,498 03% $ 0.23 $ 991 LED $ 0.15 $ 15,836 0% $ 2.47 SURVEYING $ 2,683 0.1% $ 0.42 $ 301 0.1% $ 0.05 $ 199 0.1% $ 0.03 $ 3,183 0% $ 0.50 PROJECT TESTING & INSPECTIONS $ 20,141 0 ,75% $ 3.15 $ 2,261 0.75% $ 0.35 $ 1,495 0.75% $ 0.23 $ 23,897 0% $ 3 .73 PROJECT MANAGEMENT CONSULTANT FEES $ 81,170' 3.0% $ 12.67 $ 9,110 30% $ 1.42 IS 6,024 3.0% $ 0.94 $ 96,304 0% $ 1504 LABOR COMPLIANCE $ 13,934 0.5% $ 2.18 $ 1,564 0.5% $ 0.24 $ 1,034 0.5% $ 0.16 $ 16,532 0% IS 2.58 BUILDERS RISK INSURANCE $ 5,602 0.2% $ 0.87 $ 629 03% $ 0.10 $ 416 0.2% $ 0.06 $ 6,646 0% $ 1.04 COMMISISSIONING $ 7,016 0.25% $ 1.10 $ 787 0.25% $ 0.12 $ 521 0.25% $ 0.08 $ 8,324 0% $ 1.30 PROJECT CONTINGENCIES $ 28,134 1.0% $ 4.39 $ 3,158 1.0% $ 0.49 $ 2,088 1.0% $ 0.33 $ 33,329 0% IS 5.21 10.50% 10.50% 10.50% TOTALSOFTCOM $ 279,824 $ 43.70 $ 31,406 $ 4.90 $ 20,767 $ 3.24 $ 331,997 $ S1.B4 GRAND TOTAL CONSTRUCTION COSTS& SOFT COSTS $ 2,841,526 $443.]3 $ 318,917 $ 49.80 IS 210,881 $ 32.93 $ 3,373,324 $ 526.4 Recap 2 OT 13 SS83 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworks DIVISION 1- GENERAL REQUIREMENTS General Requirements Project Staff & Temporary Utilities Temp Shelter at Sidewalk TOTAL DIVISION 1 DIVISION 2 - SITEWORK Demolition Per A Sheets: CS -A200 1- Demo existing openings w/ plywood & wood stud framing 2 - Existing doors & frames to be removed 2 - Existing Overhead doors & frames to be removed 3 - Existing rear (5) wall at the alley to be demolished, typ wall ht 33' 4- Existing walls to remain, provide temp engineering, sharing- side & front walls 6- Temporary platform & railing to be removed 7 - Storefront to be removed 8 - Marquee to be demolished 9- Gravel bag barrier @ property lines, install /maintain /remove 10- Masonry & concrete stem walls & concrete foundations to be removed 11- Existing woad framed proscenium to be removed Per A Sheets: Demo entire existing Roof Structure - Roofing Demo entire existing Roof Structure - Wood Structure Per Sheets: Remove existing footings along brick walls on sides & rear Remove existing slab -on -grade - Not required, currently it is removed Demo partially demoed balcony & stairs remaining - unknown amount of work Demo any remaining interior structures - unknown amount of work Provide underpinning of existing adjacent structures footings Provide underpinning of existing adjacent structures walls TOTAL DIVISION 2 4 mos $ 37,412.50 $ 149,650 4 mos $ 1,500.00 $ 6,000 458 sf 7 ea 1 as 1,683 sf 3 an 58 If 160 sf 1 Is 297 sf 84 If 518 sf 5,083 sf 5,083 sf $ 155,650 2.25 $ 75.00 $ 750.00 $ 3.00 $ 5,000.00 $ 25.00 $ 5.00 $ 1,500.00 $ 5.00 $ 20.00 $ 2.00 $ 1.00 $ 2.25 $ 1,031 525 750 5,049 15,000 1,450 800 1,500 1,485 1,680 1,036 5,083 11,436 6% $ 23.37 0% $ 0.94 0% 0% 0% 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% $ 24.31 294 If $ 25.00 $ 7350 0% $ %OF $ 2.00 DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS $ 2,500.00 $ 2,500 0% $ 1 Is COST 2,500.00 $ 2,500 DIVISION 1- GENERAL REQUIREMENTS General Requirements Project Staff & Temporary Utilities Temp Shelter at Sidewalk TOTAL DIVISION 1 DIVISION 2 - SITEWORK Demolition Per A Sheets: CS -A200 1- Demo existing openings w/ plywood & wood stud framing 2 - Existing doors & frames to be removed 2 - Existing Overhead doors & frames to be removed 3 - Existing rear (5) wall at the alley to be demolished, typ wall ht 33' 4- Existing walls to remain, provide temp engineering, sharing- side & front walls 6- Temporary platform & railing to be removed 7 - Storefront to be removed 8 - Marquee to be demolished 9- Gravel bag barrier @ property lines, install /maintain /remove 10- Masonry & concrete stem walls & concrete foundations to be removed 11- Existing woad framed proscenium to be removed Per A Sheets: Demo entire existing Roof Structure - Roofing Demo entire existing Roof Structure - Wood Structure Per Sheets: Remove existing footings along brick walls on sides & rear Remove existing slab -on -grade - Not required, currently it is removed Demo partially demoed balcony & stairs remaining - unknown amount of work Demo any remaining interior structures - unknown amount of work Provide underpinning of existing adjacent structures footings Provide underpinning of existing adjacent structures walls TOTAL DIVISION 2 4 mos $ 37,412.50 $ 149,650 4 mos $ 1,500.00 $ 6,000 458 sf 7 ea 1 as 1,683 sf 3 an 58 If 160 sf 1 Is 297 sf 84 If 518 sf 5,083 sf 5,083 sf $ 155,650 2.25 $ 75.00 $ 750.00 $ 3.00 $ 5,000.00 $ 25.00 $ 5.00 $ 1,500.00 $ 5.00 $ 20.00 $ 2.00 $ 1.00 $ 2.25 $ 1,031 525 750 5,049 15,000 1,450 800 1,500 1,485 1,680 1,036 5,083 11,436 6% $ 23.37 0% $ 0.94 0% 0% 0% 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% $ 24.31 294 If $ 25.00 $ 7350 0% $ - sf $ 2.00 $ - 0% $ 1 Is $ 2,500.00 $ 2,500 0% $ 1 Is $ 2,500.00 $ 2,500 0% $ 1 Is $ 2,500.00 $ 2,500 0% $ 1 Is $ 2,500.00 $ 2,500 0% $ $ $ $ 11,440 $ 0% $ West Side New 2' -0"thk mat footing 35 cy $ $ 64,174 $ 0.16 0.08 0.12 0.79 2.34 Note 3, CS -5 101 0.23 0.12 0.23 0.23 0.26 0.16 0.79 1.79 1.15 0.39 Note 4, CS -5 101 0.39 Note 5, CS -5 101 0.39 Note per CS -S 101 0.39 10.02 DIVISION 3. CONCRETE Concrete Work Foundations Front Entry New 2' -6" thk mat fooring 47 cy $ 325.00 $ 15,194 1% $ 2.37 East Side wall New 2' -O" thk mat footing 35 cy $ 325.00 $ 11,440 0% $ 1.79 West Side New 2' -0"thk mat footing 35 cy $ 325.00 $ 11,440 0% $ 1.79 Rear Theater New 2' -6 "thk mat footing 47 cy $ 325.00 $ 15,194 1% $ 2.37 Slab -On -Grade New Mat foundation under slab -an -grade 172 cy $ 325.00 $ 55,770 2% $ 8.71 New S" thick Slab on Grade 4,692 sf $ 8.75 $ 41,055 2% $ 6.41 Depressed slab for utility trench near RR's 210 sf $ 6.00 $ 1,260 0% $ 0.20 Walls Shotcrete Walls sides East /West -10 "thick 6,072 sf $ 25.00 $ 151,800 7% $ 23.70 Rebar for Shotcrete Walls -I6psf 97,152 Ibs $ 1.15 $ 111,725 5% $ 17.45 Shotcrete Walls front North- 8" thick 1,683 sf $ 25.00 $ 42,075 2% $ 6.57 Rebar for Shotcrete Walls -16psf 26,928 Ibs $ 1.15 $ 30,967 1% $ 4.84 Poured In Place Stairs New Cl P Sta irsat rear of theater lead ing to the alley 48 If $ 40.00 $ 1,920 0% $ 0.30 Rebar for stairs 960 Ibs $ 0.95 $ 912 0% $ 0.14 Fill On Metal Deck Fill on Deck - 'Equipment Loft /Data Room /Janitor Closet' - sf $ 7.00 $ - 0% $ - FillonDeck - 'Gallery' deck at rear of theater 310 sf $ 7.00 $ 2,170 0% $ 0.34 Rebar for above - assume 2psf 682 Ibs $ 0.95 $ 648 0% $ 0.10 Fill on Roof Deck 4,692 sf $ 7.00 $ 32,844 1% $ 5.13 Rebar for above - assume 4psf 20,645 Ibs $ 0.95 $ 19,613 1% $ 3.06 Fill on Roof for HVAC Units 288 sf $ 12.50 $ 3,600 0% $ 0.56 Rebar for above - assume 4psf 1,267 Ibs 5 0.95 $ 1,204 0% $ 0.19 Subtotal Building Concrete) $ 550,830 24% $ 86.01 Pricing Care & Shell Page 3 of 13 SS O A BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworks TOTAL DIVISION 3 $ 550,830 $ DIVISION 4 - MASONRY 86.01 Masonry %OF Unit Masonry -12" CIVIL at rear theater wall (includes rebar& embed installation) 2,088 sf $ DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS 0.55 $ 4,104 0% $ 0.64 5,801 COST 1% $ 2.11 TOTAL DIVISION 3 $ 550,830 $ DIVISION 4 - MASONRY 86.01 Masonry $ 73,080 Unit Masonry -12" CIVIL at rear theater wall (includes rebar& embed installation) 2,088 sf $ Rebarfor above wall- 16psf(furnished only) 36,749 Ibs $ Unit Masonry -6 "CMU at rear' gallery' wall (includes raper installation) 424 sf $ Rebarfor above wall- 16psf(furnished only) 7,462 Its $ TOTAL DIVISION 4 DIVISION 5 - METALS Structural Steel Structural Steel for Equipment Loft -15psf Structural Steel for Marquee Structure -15psf Structural Steel for Gallery Loft -15psf Structural Steel for Roof Structure -15psf Structural Steel for Catwalk Structural Steel for Stadium Seating Metal Decking Decking at Equipment Loft Decking at Marquee Structure Decking at Gallery Loft Decking at Roof Structure Decking at Electrical Shed Roof Structure in the alley Metal Fabrications (Misc. Metals) Handrailing at rear stairs Pipe railing at Gallery loft - 21ine rail w/ toe -kick Access Ladderto Gallery Loft Access Stairto Gallery Loft TOTAL DIVISION 5 DIVISION 6. WOOD AND PLASTICS Rough Carpentry General Rough Carpentry work at roof Subtotal (Rough Carpentry) TOTAL DIVISION 6 DIVISION 7 - THERMAL AND MOISTURE PROTECTION I Waterproofing 15 -mil Stegowrap vapor barrier under Slab -on -grade - per notes on CS-S 401 Subtotal (Waterproofing) Insulation Interior Walls Subtotal (insulation) Fireproofing - Structural Steel Components Subtotal (Fireproofing) Roofing Roofing at Marquee Roofing at Theater Roofing at Parapet Roof Walk Pads Tile Roof Repair Subtotal (Roofing) N 4,692 sf $ 1.75 $ 2,290 sf $ 1.25 $ 5,083 sf $ 2.75 $ 5,865 $ 0.00 $ 0.92 8,211 $ 550,830 $ 0.24 $ 86.01 35.00 $ 73,080 3% $ 11.41 ertsidesplitface 0.55 $ 20,212 1% $ 3.16 25.00 $ 10,600 0% $ 1.66 0.55 $ 4,104 0% $ 0.64 N 4,692 sf $ 1.75 $ 2,290 sf $ 1.25 $ 5,083 sf $ 2.75 $ 5,865 $ 0.00 $ 0.92 8,211 0% $ 1.28 $ 107,996 $ 16.86 - tons $ 5,800.00 $ - 0% $ - 1 tons $ 5,800.00 $ 6,090 0% $ 095 2.33 tons $ 5,801 $ 13,485 1% $ 2.11 35 tons $ 5,800.00 $ 205,842 9% $ 32.14 864 sf $ - $ - 0% $ - w /Tl price $ - $ - 0% $ - w /Tl price - sf $ 6.00 $ - 0% $ - 140 sf $ 6.00 $ 840 0% $ 0.13 310 sf $ 6.00 $ 1,860 0% $ 0.29 4,692 sf $ 6.00 $ 28,152 1% $ 4.40 24 sf $ 25.00 $ 600 0% $ 0.09 5,083 sf $ 10.00 $ 50,825 2% $ 7.94 32 If $ 55.00 $ 1,760 0% $ 0.27 49 If $ 110.00 $ 5,390 0% $ 0.84 - Is $ 2,000.00 $ - 0% $ - 1 Is $ 10,ODODO $ 10,000 0% $ 1.56 as t- $ arisen $ 324,844 $ 50.73 4,692 sf $ 1.25 $ 5,865 0% $ 092 $ 5,865 0% $ 0.92 N 4,692 sf $ 1.75 $ 2,290 sf $ 1.25 $ 5,083 sf $ 2.75 $ 5,865 $ 0.00 $ 0.92 8,211 0% $ 1.28 8,211 0% $ 1.28 140 sf 0% $ - 2,863 0% $ 0.45 2,863 0% $ 0.45 13,977 1% $ 2.18 Pricing Care & Shell Page 4 of 13 SS 05 $ 13,977 1% $ 2.18 140 sf $ 20.00 $ 2,800 0% $ 044 3,136 sf $ 12.50 $ 39,200 2% $ 6.12 904 sf $ 10.00 $ 9,040 0% $ 1.41 400 sf $ 5.00 $ 2,000 0% $ 0.31 864 sf $ 5.00 $ 4,320 0% $ O.67 $ 57,360 2% $ 8.96 Pricing Care & Shell Page 4 of 13 SS 05 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworks Flashing and Sheet Metal $ 5,000.00 $ 10,000 0% $ %OF 1 pr Coping Cap DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS $ 15.00 $ 3,390 0% $ 0.53 COST 54 If $ Flashing and Sheet Metal $ 5,000.00 $ 10,000 0% $ 1.56 1 pr Coping Cap 226 If $ 20.00 $ 4,520 0% $ 0.71 Flashing /COUMerflashing at theater roof 226 If $ 15.00 $ 3,390 0% $ 0.53 Flashing /Counterflashing at marquee roof 54 If $ 15.00 $ 810 0% $ 0.13 Sheet metal covers at HVAC Equipment pads 288 sf $ 12.50 $ 3,600 0% $ 0.56 Flashing at roof equipment 168 If $ 15.00 $ 2,520 0% $ 0.39 Gutters & Downspouts 134 If $ 20.00 $ 2,680 0% $ 0.42 Roof Access Hatch w/ ladder up assembly 1 ea $ 4,500.00 $ 4,500 0% $ 0.70 Subtotal (Flashing and Sheet Metal) $ 4,275 0% $ O.67 $ 22,020 1% $ 3.44 Sealants and Caulking 0% $ 0.47 $ 78,350 Sealants and Caulking Allowance 5,083 sf $ 0.50 $ 2,541 0% $ 0.40 Subtotal (Sealants) $ 2,541 0% $ 0.40 TOTAL DIVISION 7 DIVISION 8 - DOORS AND WINDOWS Doors / Frames / Hardware New Wood Doors at Theater Entry Complete - Single New Woad Doors Complete - Pair Sidelites at new wood doors Hallow Metal frames & Doors at RR's Hollow Metal frames & Doors at Rear exit - single Hollow Metal frames & Doors at Rear exit- pair Hollow Metal frames & Doors at Dressing room Hollow Metal frames & Doors at data room &janitor closet at equipment loft Hardware General Door Hardware Special Door Hardware Subtotal (doors, frames, hardware) Special Doors Overhead Coiling Doors at Electrical Room in Alley -7'x7' Access Doors Subtotal (Special Doors) Glass and Glazing Box Office Windows Faux Window at exterior Tempered Glass at Wood Entrance Doors Subtotal (Glass and Glazing) TOTAL DIVISION 8 DIVISION 9 - FINISHES Metal Studs & Drywall Work Exterior Walls Marquee Structure - CS -S 509 Framing for exterior marquee structure - face /sides Framing for exterior marquee structure - soffit Exterior gyp sheathing Plaster soffit at theater marquee Rework Plaster Walls at Front of Theater (includes framing /sheathing/scaffolding/plaster /foam shapes, etc) Rework exising faux windows to remain Interior Walls: First Floor Plumbing wall Non -Rated Walls -FH4 Non -Rated Walls -FH6 2nd Floor $ 106,972 5% $ 16.70 2 as $ 5,000.00 $ 10,000 0% $ 1.56 1 pr $ 10,000.00 $ 10,000 0% $ 1.56 2 ea $ 850.00 $ 1,700 0% $ 0.27 2 ea $ 1,850.00 $ 3,700 0% $ 0.58 1 ea $ 1,850.00 $ 1,850 0% $ 0.29 1 pr $ 3,125.00 $ 3,125 0% $ 0.49 2 ea $ 1,850.00 $ 3,700 0% $ 0.58 2 ea $ 18,500.00 $ 37,000 2% $ 5.78 490 sf $ 9.50 $ 4,655 0% $ 0.73 9 ea $ 475.00 $ 4,275 0% $ O.67 4 ea $ 750.00 $ 3,000 0% $ 0.47 $ 78,350 3% $ 12.23 1 ea $ 7,500.00 $ 7,500 0% $ 1.17 1 Is $ 1,000.00 $ 1,000 0% $ Ott; $ 8,500 0% $ 1.33 as $ 1,500.00 $ - 0% $ - 2 ea $ 1,000.00 $ 2,000 0% $ 0.31 84 sf $ 15.00 $ 1,260 0% $ 0.20 $ 3,260 0% $ 0.51 $ 90,110 4% $ 14.07 119 sf $ 14.00 $ 1,666 0% $ 0.26 140 sf $ 14.00 $ 1,960 0% $ 0.31 259 sf $ 5.00 $ 1,295 0% $ 0.20 140 sf $ 22.00 $ 3,080 0% $ 0.48 1,350 sf $ 75.00 $ 101,250 4% $ 15.81 3 ea $ 750.00 $ 2,250 0% $ 035 280 sf $ 12.00 $ 3,360 0% $ 0.52 144 sf $ 8.00 $ 1,152 0% $ 0.18 490 sf $ 9.50 $ 4,655 0% $ 0.73 Pricing Care & Shell Page 5 of 13 SS 86 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworks Non Rated Walls -FH4 416 sf $ 8.00 $ 3,328 %OF 0.52 Non -Rated Walls -FH6 DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS $ 2.00 $ 3,286 0% $ 0.51 COST 520 sf $ Non Rated Walls -FH4 416 sf $ 8.00 $ 3,328 0 %S 0.52 Non -Rated Walls -FH6 960 sf $ 9.50 $ 9,120 0 %$ 1.42 Ceilings 1,643 sf $ 2.00 $ 3,286 0% $ 0.51 Restroom Ceiling (Canted) - Suspended gyp ad double sided both sides 520 sf $ 12.00 $ 6,240 0% $ 0.97 Lobby area ceiling- suspended gyp board 850 sf $ 7.00 $ 5,950 0% $ 0.93 Subtotal (Lath, Plaster, Drywall) 448 sf $ 1.25 $ 11 6% $ 22.69 Tile 1,040 sf $ 1.25 $ 1,300 0% $ 0.20 Floors at RR's 324 sf $ 15.00 $ 4,860 0% $ 0.76 Wallsat RR'eto4' ht 432 sf $ 15.00 $ 6,480 0% $ 1.01 Subtotal (Tile) 9 ea $ 125.00 $ 11,340 0% $ 1.77 Acoustical Treatment 8 ea $ 75.00 $ 600 0% $ 0.09 Ceilings - no ACT Shown 81 If $ - $ - 0% $ - Subtotal (Acoustical Treatment) 5,083 sf $ 1.00 $ - 0% $ - Special Coatings 5,083 sf $ 2.00 $ 10,165 0% $ 1.59 Sealed Concrete Flooring - SOG - sf $ 2.00 $ - 0% $ - SealedConcreteFlooring - Decks 310 sf $ 2.00 $ 620 0% $ 0.10 Other Power Wash Clean & Re -Seal Existing block walls- West Elevation 1,096 sf $ 3.00 $ 3,288 0% $ 0.51 Power Wash Clean & Re-Seal Existing block walls - East Elevation 1,472 sf $ 3.00 $ 4,416 0% $ 0.69 Subtotal (Special Coatings) $ 8,324 0% $ 1.30 Painting Walls - Exterior Block Wall- Anti Graffiti to 8'height 424 sf $ 5.00 $ 2,120 0% $ 0.33 Walls - Exterior Block Wall- Block Sealer from 8'to top 1,643 sf $ 2.00 $ 3,286 0% $ 0.51 Wall at RR's 1,296 sf $ 0.95 $ 1,231 0% $ 0.19 Walls at Equipment Loft 2,752 sf $ 0.95 $ 2,614 0% $ 0.41 Walls at interior blockwalls at gallery 448 sf $ 1.25 $ 560 0% $ 0.09 Walls at interior blockwalls above gallery 1,040 sf $ 1.25 $ 1,300 0% $ 0.20 Ceilings at Interiors 1,370 sf $ 0.95 $ 1,302 0% $ 0.20 Plaster Soffit at Marquee 140 sf $ 0.95 $ 133 0% $ 0.02 Doors 9 ea $ 125.00 $ 1,125 0% $ 0.18 Door Frames 8 ea $ 75.00 $ 600 0% $ 0.09 Rails 81 If $ 5.00 $ 405 0% $ 0.06 Structural Steel - Paint Roof Beams- Black (Not noted on sheets) 5,083 sf $ 1.00 $ 5,083 0% $ 0.79 Mechanical Ductwork/ Equipment - Black (Not noted on sheets( 5,083 sf $ 2.00 $ 10,165 0% $ 1.59 Subtotal (Painting and VWC) 4 ea $ 250.00 $ 29,924 1% $ 4.67 TOTAL DIVISION 9 2 ea $ 400.00 $ 194,894 8% $ 30.43 DIVISION 10 - SPECIALTIES' Specialties Code Minimum Signage 5,083 sf $ 0.25 $ 1,271 0% $ 0.20 New Illuminated Poster /Display Case atfront 2 as $ 1,250.00 $ 2,500 0% $ 0.39 Toilet Partitions 3 an $ 1,500.00 $ 4,500 0% $ 0.70 Urninal Screens 2 an $ 550.00 $ 1,100 0% $ 0.17 Toilet and Bath Accessories Soap Dispensers 2 ea $ 75.00 $ 150 0% $ 0.02 Toilet Tissue Dispenser 3 ea $ 125.00 $ 375 0% $ 0.06 Seat Cover Dispenser 3 ea $ 75.00 $ 225 0% $ 0.04 Paper Towl Dispenser 2 ea $ 100.00 $ 200 0% $ 0.03 Feminine Napkin Dispenser 2 ea $ 125.00 $ 250 0% $ 0.04 Waste Dispenser 2 are $ 200.00 $ 400 0% $ 0.06 Robe Hook 3 are $ 25.00 $ 75 0% $ 0.01 Grab Bars 4 ea $ 250.00 $ 1,000 0% $ 0.16 Mirrors 2 ea $ 400.00 $ 800 0% $ 0.12 TOTAL DIVISION 10 $ 12,846 $ 2.01 DIVISION 11- EQUIPMENT TOTAL DIVISION 11 Pricing Care & Shell Page 6 of 13 SS 07 BALBOA THEATER k kwo k BALBOA PERFORMING ARTS THEATRE FOUNDATION g r s 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 %OF DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS COST DIVISION 12. FURNISHINGS TOTAL DIVISION 12 $ - 0% $ - DIVISION 13 - SPECIAL CONSTRUCTION TOTAL DIVISION 13 $ - $ - DIVISION 14 - CONVEYING SYSTEMS TOTAL DIVISION 14 DIVISION 21- FIRE SUPPRESSION Fire Suppression System Wet Type Fire Protection System 6,404 sf $ 7.50 $ 48,030 2% $ 7.50 TOTAL DIVISION 21 $ 48,030 $ 7.50 DIVISION 22 - PLUMBING Plumbing Piping Plumbing Complete 6,404 sf $ 10.00 $ 64,040 3% $ 10.00 TOTAL DIVISION 22 $ 64,040 $ 10.00 DIVISION 23- HEATING, VENTILATION, AIR CONDITIONING HVAC HVAC Complete 6,404 sf $ 35.00 $ 224,140 10% $ 35.00 Pricing Care & Shell Page 7 of 13 SS 88 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworks TOTAL DIVISION 22 DIVISION 26 - ELECTRICAL SYSTEMS Electrical Electrical Complete TOTAL DIVISION 26 DIVISION 31- EARTHWORK Earthwork Excavation - overex & recompaction in existing theater space - assume 2' Disposal of footing spoils TOTAL DIVISION 31 DIVISION 32 - EXTERIOR IMPROVEMENTS TOTAL DIVISION 32 DIVISION 33. UTILTIES TOTAL DIVISION 33 Pricing Care & Shell $ 224,140 $ 35.00 6,404 sf $ 30.00 $ 192,120 8% $ 30.00 $ 192,120 $ 30.00 414 cy $ 30.00 $ 12,424 1% $ 1.94 336 cy $ 15.00 $ 5,033 0% $ 0.79 $ 17,456 $ 2.73 $ - 0% $ Page S of 13 0 %OF DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS COST TOTAL DIVISION 22 DIVISION 26 - ELECTRICAL SYSTEMS Electrical Electrical Complete TOTAL DIVISION 26 DIVISION 31- EARTHWORK Earthwork Excavation - overex & recompaction in existing theater space - assume 2' Disposal of footing spoils TOTAL DIVISION 31 DIVISION 32 - EXTERIOR IMPROVEMENTS TOTAL DIVISION 32 DIVISION 33. UTILTIES TOTAL DIVISION 33 Pricing Care & Shell $ 224,140 $ 35.00 6,404 sf $ 30.00 $ 192,120 8% $ 30.00 $ 192,120 $ 30.00 414 cy $ 30.00 $ 12,424 1% $ 1.94 336 cy $ 15.00 $ 5,033 0% $ 0.79 $ 17,456 $ 2.73 $ - 0% $ Page S of 13 0 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworkE DIVISION 1- GENERAL REQUIREMENTS General Requirements Project Staff & Temporary Utilities Temp Shelter at Sidewalk TOTAL DIVISION 1 DIVISION 2- SITEWORK TOTAL DIVISION 2 DIVISION 3 - CONCRETE Concrete Work Fill On Metal Deck at stadium seating includes wwf CIP Steps on stadium aisles Subtotal (Building Concrete) TOTAL DIVISION 3 DIVISION 4 - MASONRY TOTAL DIVISION 4 DIVISION 5 - METALS Structural Steel Structural Steel for Catwalk Structural Steel for Stadium Seating Metal Decking: Metal Decking at Stadium seating Metal Fabrications (Misc. Metals) Ships Ladder to Catwalk Wall Ladder to Catwalk Ladder from Catwalk to Roof Access Hatch Handrailing at Stadium seating Piperailing 3 -line w/ toekick at catwalk Misc Steel at catwalk Misc Steel at stadium seating Framed Seating Platforms at Side Walls Left Side Right Side Framed Stage Platform TOTAL DIVISION 5 DIVISION 6 - WOOD AND PLASTICS Rough Carpentry 1 -1/8" structural fire resistant plywood at all catwalks - per Tl -S 203 Subtotal (Rough Carpentry) Finish Carpentry Kitchen Area Counter assembly Box Office Desk / Counter assembly Plywood Panels on sides of theater Subtotal (Finish Carpentry) 2 mos $ 37,412.50 $ 74,825 3% $ 11.68 2 mos $ 1,500.00 $ 3,000 0% $ 0.47 $ 77,825 $ 12.15 sf $ 8.00 $ - 0% $ If $ 25.00 $ - 0% $ $ 0% $ sf $ 25.00 $ - 0% $ - %OF $ 5,800.00 $ - DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS $ 7,500.00 $ - 0% $ - ea COST $ - 0% $ DIVISION 1- GENERAL REQUIREMENTS General Requirements Project Staff & Temporary Utilities Temp Shelter at Sidewalk TOTAL DIVISION 1 DIVISION 2- SITEWORK TOTAL DIVISION 2 DIVISION 3 - CONCRETE Concrete Work Fill On Metal Deck at stadium seating includes wwf CIP Steps on stadium aisles Subtotal (Building Concrete) TOTAL DIVISION 3 DIVISION 4 - MASONRY TOTAL DIVISION 4 DIVISION 5 - METALS Structural Steel Structural Steel for Catwalk Structural Steel for Stadium Seating Metal Decking: Metal Decking at Stadium seating Metal Fabrications (Misc. Metals) Ships Ladder to Catwalk Wall Ladder to Catwalk Ladder from Catwalk to Roof Access Hatch Handrailing at Stadium seating Piperailing 3 -line w/ toekick at catwalk Misc Steel at catwalk Misc Steel at stadium seating Framed Seating Platforms at Side Walls Left Side Right Side Framed Stage Platform TOTAL DIVISION 5 DIVISION 6 - WOOD AND PLASTICS Rough Carpentry 1 -1/8" structural fire resistant plywood at all catwalks - per Tl -S 203 Subtotal (Rough Carpentry) Finish Carpentry Kitchen Area Counter assembly Box Office Desk / Counter assembly Plywood Panels on sides of theater Subtotal (Finish Carpentry) 2 mos $ 37,412.50 $ 74,825 3% $ 11.68 2 mos $ 1,500.00 $ 3,000 0% $ 0.47 $ 77,825 $ 12.15 sf $ 8.00 $ - 0% $ If $ 25.00 $ - 0% $ $ 0% $ sf $ 25.00 $ - 0% $ - tens $ 5,800.00 $ - 0% $ - sf $ 6.00 $ - 0% $ - ea $ 7,500.00 $ - 0% $ - ea $ 3,500.00 $ - 0% $ - 1 ea $ 3,500.00 $ 3,500 0% $ 0.55 If $ 35.00 $ - 0% $ - If $ 110.00 $ - 0% $ - sf $ 5.00 $ - 0% $ - sf $ 5.00 $ - 0% $ - sf $ 25.00 $ - 0% $ - sf $ 25.00 $ - 0% $ - sf $ 25.00 $ - 0% $ - $ 3,500 $ 0.55 0% $ sf $ 10.00 $ - 0% $ - $ - 0% $ 0% $ 20 If $ 225.00 $ 4,500 0% $ 0.70 If $ 350.00 $ - 0% $ - sf $ 12.50 $ - 0% $ - $ 4,500 0% $ 0.70 Pricing TI Page 9 of 13 S•S•90 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworkE TOTAL DIVISION $ 4,500 $ 0.00 $ 0.70 %OF Metal Studs & Drywall Work Tile DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS 1,590 sf $ 1.25 $ 1,988 0% $ 0.31 Subtotal (insulation) COST 1,988 0% $ TOTAL DIVISION $ 4,500 $ 0.00 $ 0.70 DIVISION 7 - THERMAL AND MOISTURE PROTECTION Metal Studs & Drywall Work Tile Insulation DIVISION 8 - DOORS AND WINDOWS Doors / Frames / Hardware Floors at Unisex RR in Performers area Interior Walls 1,590 sf $ 1.25 $ 1,988 0% $ 0.31 Subtotal (insulation) $ 1,988 0% $ 0.31 Sealants and Caulking 2 ea $ 1,850.00 $ 3,700 0% $ Interior Sealants and Caulking Allowance 5,083 sf $ 0.50 $ 2,541 0% $ 0.40 Subtotal (Sealants) $ 2,541 0% $ 0.40 TOTAL DIVISION 7 $ 4,529 0% $ 0.71 Metal Studs & Drywall Work Tile DIVISION 8 - DOORS AND WINDOWS Doors / Frames / Hardware Floors at Unisex RR in Performers area - sf $ 15.00 First Floor Packet Door at Performer RR - ea $ 2,000.00 $ - 0% $ - Hollow Metal frames & Doors 2 ea $ 1,850.00 $ 3,700 0% $ 0.58 Hardware $ 8.00 $ - 0% $ - Non -Rated Walls- FH4 at stadium seating General Door Hardware 2 ea $ 475.00 $ 950 0% $ 0.15 Subtotal (Doors, Frames, Hardware) $ 8.00 $ 4,650 0% $ 0.73 TOTAL DIVISIONS $ 9.50 $ 4,650 0% $ 0.73 DIVISION 9 - FINISHES $ 19,875 1% $ Metal Studs & Drywall Work Tile Interior Walls: Floors at Unisex RR in Performers area - sf $ 15.00 First Floor 0% $ - Walls - sf $ Plumbing wall - sf $ 12.00 $ - 0% $ - Non -Rated Walls -FH4 - sf $ 8.00 $ - 0% $ - Non -Rated Walls- FH4 at stadium seating - sf $ 8.00 $ - 0% $ - Non -Rated Walls -FH4 at box office - sf $ 8.00 $ - 0% $ - Non -Rated Walls -FH6 - sf $ 9.50 $ - 0% $ - Non -Rated Walls -2FH6- New demising wall 1,590 sf $ 12.50 $ 19,875 1% $ 3.10 Soffits - sf $ 6.00 $ - 0% $ - Ceilings- with Core &Shell pricing $ - $ - $ - 0% $ - StorageroomCeiling (Canted) - Under stadium seating - sf $ 8.00 $ - 0% $ - Subtotal (Lath, Plaster, Drywall) $ 19,875 1% $ 3.10 Tile Floors at Unisex RR in Performers area - sf $ 15.00 $ - 0% $ - Walls - sf $ 15.00 $ - 0% $ - Subtotal (Tile) $ - 0% $ - Acoustical Treatment Ceilings - ACT in new room 1,325 sf $ 6.00 $ 7,950 0% $ 1.24 Ceilings- Open to above in new configuration - sf $ - $ - 0% $ - Walls -2" Fiberglass wrapped fabric panels on sides oftheater - sf $ 20.00 $ - 0% $ - Walls -2 "Fiberglass wrapped fabric panels on backwall top ofstadium seating - sf $ 20.00 $ - 0% $ - Subtotal (Acoustical Treatment) $ 7,950 0% $ 1.24 Flooring Concrete Fluor Polishing 4,692 sf $ 2.85 $ 13,372 1% $ 2.09 Rubber Base 306 If $ 1.50 $ 459 0% $ 0.07 Resilient Flooring Rubber Base - If $ 2.75 $ - 0% $ - Carpeting Entry Lobby - sf $ 5.00 $ - 0% $ - Pricing TI Page 10 of 13 S+S•91 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworkE Theatre - st 5 5.00 $ - %OF - Carpeting over plywood at Catwalk DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS 400.00 $ - 0% $ $ 13,831 1% $ 2.16 COST 400.00 $ - 0% $ Theatre - st 5 5.00 $ - 0% 5 - Carpeting over plywood at Catwalk - sf $ 5.00 $ - 0% $ - Subtotal (Flooring) sa $ 400.00 $ - 0% $ $ 13,831 1% $ 2.16 Painting 400.00 $ - 0% $ Walls 4,080 sf $ 1.10 $ 4,488 0% $ 0.70 Ceilings - sf $ 1.10 $ - 0% $ - Doors 2 ea $ 125.00 $ 250 0% $ 0.04 Door Frames 2 ea $ 75.00 $ 150 0% $ 002 Structural Steel / railing / ladders / etc. 1 Is $ 7,500.00 $ 7,500 0% $ 1.17 Subtotal (Painting and VWC) $ 12,388 1% $ 1.93 TOTAL DIVISION 9 DIVISION 10- SPECIALTIES Specialties Room ID Devices Fire Extinguishers and Cabinets Toilet Partitions Toilet and Bath Accessories Soap Dispensers Toilet Tissue Dispener Seat Cover Dispenser Paper Towl Dispenser Feminine Napkin Dispenser Waste Dispenser Robe Hook Grab Bars Mirrors Shower Seat Grab Bars at shower Shower Enclosure TOTAL DIVISION 10 DIVISION 11- EQUIPMENT Equipment Theater and Stage Equipment Motorized Projection Screen at stage - TI -TD -1 & 2 Audio - Visual Equipment Catwalk mounted house lights TI -A -402 Specialty Equipment - Kiln Kitchen Equipment TOTAL DIVISION 11 DIVISION 12 - FURNISHINGS Treatments Drapes: per TI -TD -1, 2, & 3 'Walk - along' Drapery Track & Draperies at Catwalk walls 'Acoustical' Drapery Track & Draperies at Catwalk railing Drapery Track & Draperies at Stage Subtotal (Treatments) Furniture Theater Seats - Fixed at Stadium Seating Theater Seats - Removable at Center Rows Theater Seats - Removable at Left Side Theater Seats - Removable at Right Side 5,083 sf $ 6 ea $ as $ ea ea ea ea ea ea ea ea ea ea ea ea $ 54,044 2% $ 6.44 0.10 $ 375.00 $ 1,750.00 $ 75.00 $ 125.00 $ 75.00 $ 100.00 $ 125.00 $ 200.00 $ 25.00 $ 250.00 $ 400.00 $ 1,500.00 $ 500.00 $ 1,000.00 $ C+ sf $ 75.00 $ Is $ 125,000.00 $ ea $ 3,500.00 $ 1 Is $ 20,000.00 $ 1 Is $ 20,000.00 $ C+ 508 2,250 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0% $ 0.08 0.35 2,758 $ 0.43 0% $ 0% $ - 0% $ 20,000 1% $ 3.12 20,000 1% $ 3.12 40,000 $ 6.25 sf $ 30.00 $ - 0% $ sf $ 30.00 $ - 0% $ sf $ 30.00 $ - 0% $ $ 0% $ ea $ 800.00 $ - 0% $ sa $ 400.00 $ - 0% $ ea $ 400.00 $ - 0% $ ea $ 400.00 $ - 0% $ Pricing TI Page 11 of 13 S•S•9.2 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworkE Subtotal (Furniture) TOTAL DIVISION 12 DIVISION 13 - SPECIAL CONSTRUCTION Exterior Specialties Event Banner on Metal Bracket Decorative Flag Marquee Sign (3 sided) TOTAL DIVISION 13 DIVISION 14- CONVEYING SYSTEMS TOTAL DIVISION 14 DIVISION 21- FIRE SUPPRESSION Fire Suppression System - carried with Core & Shell TOTAL DIVISION 21 DIVISION 22 - PLUMBING Plumbing Plumbing TI $ ea $ 3,500.00 $ - ea $ 1,500.00 $ - 1 Is $ 25,000.00 $ 25,000 $ 25,000 6,404 sf $ 4.00 $ 25,616 TOTAL DIVISION 22 $ 25,616 DIVISION 23 - HEATING, VENTILATION, AIR CONDITIONING Equipment HVAC TI - sf $ TOTAL DIVISION 22 DIVISION 26 - ELECTRICAL SYSTEMS Electrical Electrical TI IfO k11 H111 d 1-7 DIVISION 31- EARTHWORK TOTAL DIVISION 31 DIVISION 32 - EXTERIOR IMPROVEMENTS TOTAL DIVISION 32 DIVISION 33- UTILTIES IDICIIPIPIL 1.1k&K 7.50 $ sf $ 10.00 $ 0% 5 0% $ 0% $ 0% $ 1% $ 3.90 $ 3.90 1% $ 4.00 $ 4.00 0% $ 0% $ 0% $ Pricing TI Page 12 of 13 SS93 %OF DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST /SF NOTES AND COMMENTS COST Subtotal (Furniture) TOTAL DIVISION 12 DIVISION 13 - SPECIAL CONSTRUCTION Exterior Specialties Event Banner on Metal Bracket Decorative Flag Marquee Sign (3 sided) TOTAL DIVISION 13 DIVISION 14- CONVEYING SYSTEMS TOTAL DIVISION 14 DIVISION 21- FIRE SUPPRESSION Fire Suppression System - carried with Core & Shell TOTAL DIVISION 21 DIVISION 22 - PLUMBING Plumbing Plumbing TI $ ea $ 3,500.00 $ - ea $ 1,500.00 $ - 1 Is $ 25,000.00 $ 25,000 $ 25,000 6,404 sf $ 4.00 $ 25,616 TOTAL DIVISION 22 $ 25,616 DIVISION 23 - HEATING, VENTILATION, AIR CONDITIONING Equipment HVAC TI - sf $ TOTAL DIVISION 22 DIVISION 26 - ELECTRICAL SYSTEMS Electrical Electrical TI IfO k11 H111 d 1-7 DIVISION 31- EARTHWORK TOTAL DIVISION 31 DIVISION 32 - EXTERIOR IMPROVEMENTS TOTAL DIVISION 32 DIVISION 33- UTILTIES IDICIIPIPIL 1.1k&K 7.50 $ sf $ 10.00 $ 0% 5 0% $ 0% $ 0% $ 1% $ 3.90 $ 3.90 1% $ 4.00 $ 4.00 0% $ 0% $ 0% $ Pricing TI Page 12 of 13 SS93 BALBOATHEATER BALBOA PERFORMING ARTS THEATRE FOUNDATION 100% DESIGN DEVELOPMENT ESTIMATE - UPDATE August 8, 2014 gkkworks DIVISION 1 - GENERAL REQUIREMENTS 5 I $ 500.00 $ 2,500 %OF 0.39 TOTAL DIVISION DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL PROJECT COST/SF NOTES AND COM VENTS $ - $ - 0% $ - by Water Co. COST $ DIVISION 1 - GENERAL REQUIREMENTS 5 I $ 500.00 $ 2,500 0 %$ 0.39 TOTAL DIVISION $ 750.00 $ - $ - DIVISION 2 - SITEWORK 1 ea $ - $ - 0% $ - by Water Co. Demolition - Site $ - $ - 0% $ - Traffic Control / Street & Lane Closures for work 1 Is $ 20,000.00 $ 20,000 1% $ 3.12 Demo & Remove Concrete slab in alley 550 sf $ 5.00 $ 2,750 0% $ 0.43 Demo & Remove Curb & Gutter on Balboa Blvd 60 sf $ 5.00 $ 300 0% $ 0.05 Demo & Remove Sidewalk on Balboa Blvd 780 sf $ 5.00 $ 3,900 0% $ 0.61 TOTAL DIVISION 2 $ 26,950 $ 4.21 DIVISION 32 - EXTERIOR IMPROVEMENTS 5 If $ 500.00 $ 2,500 0% $ 0.39 Exterior Improvements 1 ea $ 750.00 $ 750 0% $ 0.12 Landscaping and Irrigation $ - $ - 0% $ - Trees - Street Tree Replacement 2 as $ 2,000.00 $ 4,000 0% $ 0.62 Tree Well Cover 2 ea $ 750.00 $ 1,500 0% $ 0.23 Subtotal (Landscaping) I ea $ 750.00 $ 5,500 0% $ 0.86 Site Concrete 1 ea $ - $ - 0% $ - by Gas Co. Curb & Gutter on Balboa Blvd - Worst Case (City may require new concrete work) 60 If $ 25.00 $ 1,500 0% $ 0.23 Sidewalk on Balboa Blvd -Worst Case (City may require new concrete work) 780 sf $ 15.00 $ 11,700 1% $ 1.83 Alley Concrete - Worst Case (City may require new concrete work in alley) 550 sf $ 25.00 $ 13,750 1% $ 2.15 Subtotal (Site Concrete) $ 26,950 1% $ 4.21 AC Paving Slot Patching at Balboa Blvd for new Curb work 60 If $ 40.00 $ 2,400 0% $ 0.37 Subtotal (AC Paving) $ 2,400 0% $ 0.37 TOTAL DIVISION 32 $ 34,850 2% $ 5.44 DIVISION 33 - UTILTIES Water Piping -2 "CW into alley 5 I $ 500.00 $ 2,500 0 %$ 0.39 Connections 1 as $ 750.00 $ 750 0% $ 0.12 Meters 1 ea $ - $ - 0% $ - by Water Co. Sanitary Sewer Piping -6 "SS into alley 7 If $ 750.00 $ 5,250 0% $ 0.82 Manholes $ - $ - 0% $ - Connections I on $ 750.00 $ 750 0% $ 0.12 Storm Sewer (None Shown, assume surface drainage) Fire Water Piping -6 "FW into alley 5 If $ 500.00 $ 2,500 0% $ 0.39 Connections 1 ea $ 750.00 $ 750 0% $ 0.12 Fire Hydrants $ - $ - 0% $ - Gas Piping 8 If $ 500.00 $ 4,000 0% $ 0.62 Connections I ea $ 750.00 $ 750 0% $ 0.12 Meters 1 ea $ - $ - 0% $ - by Gas Co. Electrical Distribution 250 If $ 125.00 $ 31,250 1% $ 4.88 Transformers 1 Is $ 50,000.00 $ 50,000 2% $ 7.81 TOTAL DIVISION 33 $ 98,500 $ 15.38 Pricing Sitework Page 13 of 13 S•S•94 ATTACHMENT D PROPOSED CONCEPT Balboa Village Fine Arts Center Concept: A community space for performing arts, films and arts education for area residents and visitors to the Peninsula and Balboa Island. An open, flexible, airy venue that can be one thing in the morning and other things in the afternoon and evening. A venue that the Peninsula (as well as Balboa Island and the greater Newport Beach) community embraces as the community's space for celebrating the arts and other civic events. Activities and Programs: Priority 1 - Arts Education & Exhibitions • Classes, workshops, lectures, and presentations on: • oil and water color painting • sculpture • mixed media • drawing • photography, film • ceramics /pottery • crafts — such as jewelry- making • music — instruments and vocals • culinary —food, beer - making, etc. (focus is on active, busy, noisy, somewhat messy things that you can't do elsewhere) • Day camp sessions for youth, teens — arts, theater, music • Community art shows /sales /exhibitions /festivals in partnership with NB Arts Foundation Priority 2 (A) Live Performances • Musical performances linked to a concurrent arts show or presentation • Small group musical performances — single performers, quartets, etc. • Live performances — bands and vocalists professionally booked but that are complementary to (not in direct competition with) Lido Live. • Open mic nights (B) Film /Movie Events • Summer community movie nights — low /no admission, family and kids fare, oldies but goodies, surfing movies, etc. (Wed -Sun evenings at 8:00 p.m.) • Participation with the NB Film Festival for Festival screenings and lectures — documentaries, shorts, art house genre — with filmmaking classes • Limited special showings of select films outside of the NBFF (5 -8 times /year), such as independent films of artistic value. Priority 3 - Community Events • Community /City meetings affecting the neighborhood (Peninsula or Balboa Island) • Indoor gathering area as needed for: • Other Recreation and Senior Services /Newport Navigator programming TBD • Other programs identified within the Cultural Arts Master Plan • Local educational /school needs SS96 Priority 4 - Facility Rentals • Event space for receptions relating to Balboa Village celebrations: • Christmas Boat Parade • Christmas Tree Lighting Ceremony ( i.e., live carolers, etc) • Newport to Ensenada Race • Other seasonal Balboa Village Merchants Association events • Family events — weddings, reunions, birthdays • Corporate or non - profit organization lectures /meetings What the Building Interior Would Look Like • 'Black Box" Concept - as much flexible open airy space as possible, but with an entry/lobby area and restrooms /storage as "musts ". Space permitting, possibly a breakout room (maybe similar to the below photo, with storage in upper area) • Quality but basic finishes — brick, glass, steel, concrete - sealed floor, better front windows, better building frontage that looks more authentic w /BV design themes • A donor wall — or similar — to recognize and honor all of the past donors to the theater since 1998. • No fixed seating, no stage. A portable stage would be available when needed. • One wall capable of holding a large screen and /or white wall for projection • No food service — contract with variety of caterers when needed • Quality sound and lighting system Interior Theme (ignore furnishings in below diagram): Management /Staffing o BPATF would terminate the lease with the City of Newport Beach as the theatre transitions to a fine arts center. Foundation may remain as a funding /support entity (TBD). SS97 o City would own and manage the building, managing the Center through Recreation /Sr. Services with permanent staff and contract staff assistance (see the Financial section above for more detailed information). o RSS would hold regular open meetings (2x a year) with interested users, neighbors, former Foundation members, to discuss Center operations, issues, new programs, etc. CY.X•7:1