2016 CAPITAL GRANT APPLICATION
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- Lilian Sharp
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1 DEADLINE: Applications must be received by January 29, 2016 at 4pm. One application (either capital or equipment) per organization will be accepted CAPITAL GRANT APPLICATION ORGANIZATION: The Grand Inc. Name: Grand Opera House Address: 818 N. Market Street Wilmington, DE Federal Employee Identification Number: Contact Person: Meredith Mitchell McAloon Phone: x 3302 Title: Director of Development mmcaloon@grandopera.org Who do you serve? Brandywine Valley Region How many clients receive services annually? 125,000 PROJECT: Project Description: Check one: Building X Renovation/Repair Land Purchase Estimated Timing: Start Month/Year: July 2016 End Month/Year: September 2016 Please note that projects completed prior to June 30, 2016 are ineligible for funding. Project Location (include street address): 818 N. Market Street Wilmington, DE Location of communities served by project: Brandywine Valley Region Total Project Budget: $24,995 Amount Requested from DCF: $25,000 (Maximum $25,000) 1
2 REQUIRED SIGNATURES: Applicant organization does not discriminate in staffing or services on the basis of race, religion, gender, age, disability, national origin, or sexual orientation. Executive Director/President / Mark Fields (print full name) Board Chairman / Francis J. Skip Pennella (print full name) 2
3 Please state your organization s mission and provide a detailed description of the capital project (1 page limit) The Grand Opera House entertains and engages its communities through exceptional, diverse live performances and educational outreach. Committed to broad accessibility and sound financial management, The Grand enhances regional quality of life and contributes to a thriving downtown Wilmington. As steward of a historic Delaware theater that is home to several valued arts groups, The Grand affirms the arts vital role within our communities to promote greater understanding and lift the human spirit. To help us continue our role as stewards of this historic building, we respectfully ask Delaware Community Foundation to consider supporting The Grand with a gift of $25,000, which will allow us to undertake a much-needed restoration of the building s three cupolas, preserving this iconic façade. The three ornamental cupolas, rebuilt in the 1970s, are a potential safety hazard as pieces of shingle and wood are beginning to decay due to rot and water damage. Additionally, water is penetrating the building from the compromised sections of the cupolas. The Grand needs to reinforce the structural integrity of the building to ensure the safety of the public and our patrons as well as our volunteers, tenants, and staff members. The Grand Opera House has been a landmark for the residents of Wilmington and the surrounding region for over a century. Opened in 1871 as a home for the Grand Lodge of the Masons, The Grand Opera House features a distinctive façade of cast iron adorned with Masonic images and topped with three ornamental cupolas. The Grand has hosted thousands of legendary performers such as John Philip Sousa, Buffalo Bill, and Ethel Barrymore. Throughout the early 20 th century, however, The Grand underwent a few transformations from Opera House to vaudevillian venue to movie theater before it was allowed to fall into decline and disrepair, eventually closing its doors in After years of decline, this beautiful Grand Lady of Market Street was brought back to its original splendor in the early 1970s and since then, the patrons and supporters of The Grand Opera House have served as stewards to preserving this historical masterpiece. Forty years later, The Grand Opera House is once again starting to show signs of wear and is in need of repair. As historian Toni Young eloquently states, A building is not merely a pile of bricks and mortar. It is the embodiment of the spirit of the people and the activities that prosper in it. The preservation work to The Grand is more than just restoration it is an investment in the future of arts and culture in downtown Wilmington. 3
4 State proposed impact of completed capital project on the following (1 page limit): 1) Community at large 2) Capacity to serve current clients 3) Capacity to serve additional clients 4) Work space comfort, safety, and attractiveness The restoration work to The Grand s cupolas will ensure the safety of our patrons, neighbors, and visitors. The Grand is home to First State Ballet, OperaDelaware, the Masons, Mobius New Media, and PCS and we must remain diligent in safeguarding our tenants and their guests. Furthermore, beginning the project before the damage becomes severe will ensure the work will not be invasive and allow all areas of The Grand to remain open during construction, thereby continuing to serve our current and future patrons. Many City residents and visitors pass by The Grand every day. With that number slated to increase as Wilmington continues to become more vibrant, it is crucial that the building remains safe and creates a positive public impression. The Grand strives to remain the premier arts organization in the community for performances, arts instruction, and outreach; in order to do so, we must adhere to a strict safety code. With so many exciting changes currently happening throughout Wilmington, The Grand stands as an architectural jewel in the evolving vista of downtown. In addition to preserving The Grand as a mainstay in the Wilmington landscape, the restoration of the cupolas will also dovetail nicely with our other major endeavors to increase The Grand s cultural impact in downtown Wilmington and our community at large. The Grand continues to increase its commitment to the Wilmington arts scene with the recently assumed operation of its companion historic downtown theater, The Playhouse on Rodney Square (formerly DuPont Theatre). The addition of this venerated Broadway-style venue will amplify The Grand s programming reach, adding another 50 performances to its annual calendar and bringing more people to Market Street. Furthermore, The Grand has expanded its community impact through increased arts education programming and dynamic performances (our own and those of our partners and tenants). With the growth of the arts audience in Wilmington, it is imperative to ensure The Grand is structurally sound and safe for our patrons, volunteers, and neighbors. 4
5 Substantiate need for DCF funding (1 page limit): Why is funding from DCF needed? The Grand s business model is based on our community service mission and though financially stable, The Grand will always rely on contributed support from our community partners. We continue to work strategically to strengthen and grow these partnerships. The Grand is more than just an institution; it is a place to call home for our dedicated patrons, our 175 volunteers, and the community at large. Whether through performances held in Copeland Hall, corporate conferences, music instruction in our Arts Academy, Summer Children s Theater, or our various outreach projects, The Grand is a place where the community may gather and experience the arts right in the heart of Wilmington. The building is a community asset and we rely on civic support to maintain it. For more than 140 years, the Grand Opera House has played a crucial role in promoting the quality of life and economic vitality in our community. Hosting more than 300 events per year (our own and those of our partners and tenants), The Grand is a symbol of the performing arts in Wilmington. The Grand Opera House is known for its evocative style, a clear tribute to the timeless beauty of a forgotten era. A $25,000 gift from DCF will allow us to fully restore The Grand s cupolas, thus preserving this cultural landmark for years to come. The restoration work on The Grand s three ornamental cupolas is one of many structural projects The Grand has slated over the next few years in an effort to maintain the architectural integrity of such an iconic building. With so many donors focusing on project-specific gifts, capital funding is difficult to find. The Grand has been a grateful recipient of the Foundation s generosity when DCF funded The Grand s elevator renovations during our Imagine Your Grand Tomorrow campaign. Thanks to capital grants from generous donors such as DCF, The Grand is able to better focus on our mission-driven projects benefitting the community at large. 5
6 Other funding sources (1 page limit) Crystal Trust: $145,000 request denied for cupola work and additional capital needs 6
7 Grand Opera House Cupola Restoration Project Budget Demolition $11,400 Rough Carpentry $925 Finish Carpentry $6,125 Roofing $3,000* Painting $2,000* General Conditions $6,545 $29,995 projected cost $24,995 known estimate *These estimates are subject to change based on potential further damage during demolition.
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9 Income Statement for The Grand Year-End Projection at December 31, 2015 Projected July 31, 2016 FY2016 Budget Combined Grand Playhouse Combined Grand Playhouse Combined Variance Income Gross Ticket Revenue 1,435,244 2,450,550 3,885,794 1,390,268 2,534,562 3,924,830 (39,036) Preservation Building Fee 249, , , , , ,140 (24,990) Gross Ticket Revenue & Preservation Fee 1,684,994 2,591,950 4,276,944 1,630,008 2,710,962 4,340,970 (64,026) Less: Artist Fees 1,205,301 1,566,216 2,771,517 1,066,145 1,527,900 2,594, ,472 Net Ticket Revenue 479,693 1,025,734 1,505, ,863 1,183,062 1,746,925 (241,498) Other Earned Income 976, ,052 1,425, , ,669 1,485,738 (60,079) Total Earned Income 1,456,300 1,499,786 2,956,086 1,552,932 1,679,731 3,232,663 (276,577) Contributed Income - Individual 312, , ,200 2, ,700 (47,723) Contributed Income - Corporate 68,800 25,000 93,800 25,000 50,000 75,000 18,800 Fundraising Events 380, , , ,000 (64,220) Grants & Foundations 401, , , ,000 (200) Endowments 633, , , ,860 15,343 Government (State, City, County) Funding 400, , , ,000 - Total Contributed Income 2,197,560 25,000 2,222,560 2,248,060 52,500 2,300,560 (78,000) Total Income 3,653,859 1,524,786 5,178,646 3,800,992 1,732,231 5,533,223 (354,577) Expense Salary & Wages 1,683, ,276 2,273,734 1,660, ,749 2,240,620 33,114 Benefits & Other Employment Costs 441,389 50, , ,204 52, ,321 (26,162) Total Salaries & Benefits 2,124, ,046 2,765,893 2,127, ,866 2,758,941 6,952 Administration 141,024 15, , ,911 17, ,471 (18,136) Box Office 124,704 93, , ,350 90, ,950 11,702 Development 33,283 5,000 38,283 36,450 12,500 48,950 (10,667) Fundraising Events Expense 244, , , ,500 (8,849) Community Engagement 48,541 6,344 54,885 65,584 8,470 74,054 (19,169) Facilities 614, , , , , ,400 (81,964) Marketing 312, , , , , ,542 (81,132) Other Production 113,836 87, , , , ,075 (2,279) Total Operating Expense 3,757,552 1,542,789 5,300,341 3,844,687 1,659,196 5,503,883 (203,542) Operating Surplus/(Deficit) (103,693) (18,002) (121,695) (43,695) 73,035 29,340 (151,035) Finance Committee Meeting January 27, 2016
10 The Grand Balance Sheet December 31, 2015 ASSETS LIABILITIES AND NET ASSETS Current Assets Current Liabilities Cash and Cash Equivalents $ 1,525,624 Notes Payable - DCF $ 250,000 Accounts Receivable 2,781 Current Portion of Capital Lease Obligation 3,568 Contributions Receivable 807,229 Accounts Payable 446,112 Inventory 17,838 Accrued Expenses 8,850 Prepaid Expenses 316,506 Advance Production Income 1,592,854 Advance Rental Income 344,158 Total Current Assets $ 2,669,978 Total Current Liabilites $ 2,645,542 Property and Equipment Long-Term Liabilities Land $ 679,600 Notes Payable - Bank $ 136,000 Building and Improvements 26,863,752 Equipment 1,487,954 Total Long-Term Liabilities $136,000 $ 29,031,306 Total Liabilities $ 2,781,542 Less: Accumulated Depreciation (20,989,953) Net Assets Net Property and Equipment $ 8,041,353 Unrestricted $ 4,758,803 Temporarily Restricted 3,457,335 Other Assets: Permanently Restricted 4,665,585 Beneficial Interst in Perpetual Trusts $ 4,951,934 Total Net Assets $ 12,881,723 Total Other Assets $ 4,951,934 Total Assets $ 15,663,265 Total Liabilities and Net Assets $ 15,663,265 Unaudited - For Management Purposes Only January 27, 2016
11 Please note the following attachment is our Fiscal Year 2014 Audit. Should you require our Fiscal Year 2015 Audit in reviewing this application, it will be available upon request after Board approval on March 1, 2016.
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37 Board of Directors Randall G. Burton Cleon L. Cauley, Sr. Tatiana B. Copeland Frederick J. Dawson Catherine Dean Gooderham Joseph A. DePaulo, Jr. Carol A. DiLuzio Brian DiSabatino Richard Farmer Mark Fields Michael F. Gallagher Larry D. Gehrke David Ley Hamilton, Esq. Robert V.A. Harra, Jr. Marcus Henry Melissa Kenny Roger D. Kirtley Ellen K. Levin Andrew M. Lubin Nicholas M. Marsini, Jr. William S. Montgomery Bret Morris Domenic Pedante Francis J. Skip Pennella Salvatore J. Chip Rossi, Jr. Jeffrey M. Schlerf, Esq. Elaine Hughes Singleton Staci L. Vernick William J. Wade, Esq. Enid Wallace Simms
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