REQUEST FOR LETTERS OF INTEREST (RLOI) FOR THE DEVELOPMENT OF THE ARTS WAREHOUSE PROJECT NO. CRA

Transcription

1 REQUEST FOR LETTERS OF INTEREST (RLOI) FOR THE DEVELOPMENT OF THE ARTS WAREHOUSE PROJECT NO. CRA Release Date: Sunday, December 20, 2015 Due Date: Tuesday, January 26, 2016 at 2:00 P.M. (EST) Delray Beach Community Redevelopment Agency 20 N. Swinton Avenue Delray Beach, FL

2 TABLE OF CONTENTS REQUEST FOR LETTERS OF INTEREST (RLOI) GENERAL INFORMATION AND REQUIREMENTS PAGE 1-1 Invitation to submit Letters of Interest General Property Description Property Development Approvals and Entitlements Property Visits Letter of Interest Review and Presentations 6 LETTER OF INTEREST SUBMISSION AND WITHDRAWAL 2-1 Definitions Letter of Interest Submission Letter of Interest Costs Inquiries 2-5 No Lobbying Contact Permitted 2-6 Local Business Preference 2-7 Registration and Addenda 2-8 CRA Actions INSTRUCTIONS FOR PREPARING LETTERS OF INTEREST 3-1 Authorized Representatives of Organization Letter of Interest Format 8 REVIEW OF LETTERS OF INTEREST 4-1 Preliminary Timetable

3 REQUEST FOR LETTERS OF INTEREST (RLOI) GENERAL INFORMATION AND REQUIREMENTS 1-1 INVITATION TO SUBMIT LETTERS OF INTEREST The Delray Beach Community Redevelopment Agency ( CRA ) requests Letters of Interest concerning the future development of a parcel of CRA-owned land (the Property ) located at 313 NE 3rd Street, Delray Beach, FL (PCN ) from any interested entity as more fully described herein. (See Exhibit A) The CRA is considering a partnership with one or more entities for the development of the Property as an arts incubator, which may include other arts related uses. As the initial step in this process, the CRA is requesting Letters of Interest for development of the Property, as well as suggestions and comments. Depending on the number of and the contents of the Letters of Interest that are submitted to the CRA, as well as, the comments and suggestions received by the CRA, the CRA may establish a Review Committee to evaluate the Letters of Interest and will determine the appropriate process for additional public comments. After receipt of additional public input regarding the Letters of Interest, the CRA may issue a Request for Proposal ( RFP ), or other invitation for a specific use or possible group of uses, and take any other action determined by the CRA to be in its best interest, or to take no action. Receipt and acknowledgment of any Letter of Interest does not imply or provide the interested party with any right or interest in the Property, or expectation of any action on the part of the CRA. The purpose of this request for Letters of Interest with respect to the Property is to: A. Assist the CRA in analyzing the future partnership opportunities to develop the Property as an arts incubator, which may include other visual arts related uses in accordance with the CRA s vision and goals. B. Enable all interested parties an opportunity to submit Letters of Interest in order for the CRA to receive input on development potential for the Property. C. Allow for public input on all proposals received in Letters of Interest and other opportunities for development of the Property. Letters of Interest should contain a detailed description of the proposed future development of the Property. At a minimum, Letters of Interest should indicate how the proposed development of the Property will provide for the following: Demonstrate how the finance gap of $1 Million Dollars can be 3

4 bridged and leveraged with the CRA s $2.8 Million Dollar investment ($1 Million in acquisition costs and $1.8 Million Dollars budgeted for construction) If the development will be open to the general public at designated hours Demonstrate consistency with the goals of the CRA Plan Demonstrate a connection to and compatibility with the adjacent businesses and residential properties. Have an attractive pedestrian oriented environment Be financially and operationally feasible In addition, Letters of Interest should specify in detail Proposed leasehold, financial (including proposed guarantees), and other terms Requirements, if any, for project participation by the CRA (financial, operational, or otherwise) If use is income-producing, proposed amount of income to CRA and payment schedule Acknowledgement that the Property cannot be pledged as collateral Compliance of proposed use with current approved Planning and Zoning approvals, and/or proposed changes to the current construction drawings, including building floor, structural, electrical, mechanical, and plumbing plans, elevations, building height, and other land development parameters Detailed project description and proposed implementation plan and schedule 1-2 GENERAL PROPERTY HISTORY AND DESCRIPTION The Property is bounded by NE 3rd Street to the south, the FEC Railway to the east, and Artists Alley to the west, and is approximately 500 south of NE 4th Street. The Property supports a previously developed 15,007 square foot warehouse building on a 0.45 acre lot (see Exhibit B). Located in the vibrant Pineapple Grove Arts District (PGAD) Overlay, the property has Central Business District Railroad Corridor (CBD- RC) zoning and a Commercial Core (CC) Future Land Use designation. As early as 2009, City Commission adopted an amendment to the CRA Plan through City Ordinance ( The amendment included several new projects and initiatives, including Part Four, II.B.3.13, Arts Based Economic Development. This section outlined the CRA s commitment to provide staff support and resources to assist the Creative City Collaborative (CCC) and other art and culture organizations in directing and implementing the City s cultural plan and to develop strategies and programming to protect existing arts spaces and create 4

5 long-term affordable space at location such as the City-owned Old School Square garage, or other buildings that are purchased or leased by the City, CRA, or nonprofit organizations for the purpose of providing affordable arts-related venues. The overall goal of these initiatives is to establish Delray Beach as an artist-friendly city and as a desirable location for galleries, studios, and artists residences. On February 3, 2010, the CRA purchased the Property for $1 Million Dollars. One of the objectives of this purchase was to create long term affordable space for arts related uses, as outlined by the CRA Plan. In addition, arts and cultural programming in the development of the Property into an Arts Warehouse would have the potential of fulfilling the objectives of the City s Cultural Plan, creating a place where artists of all kinds: would engage in unique, hands-on-learning, presentations, exhibitions, and discussions in a broad range of disciplines. In 2010, the CRA completed the construction of a new parking lot on NE 3rd Avenue to supplement parking for area businesses and also acquired a blighted parking lot at 362 NE 3rd Avenue. The improvements to the parking lot at 362 NE 3rd Avenue have been completed. Streetscape improvements along NE 3rd Street, NE 3rd Avenue, and the alleyway are at 90% completion. These improvements are designed to provide safe, well-lighted pedestrian connections to the public parking areas and to area businesses, including the Arts Warehouse to be developed on the Property. On July 14, 2011 following an RFQ selection process, the CRA Board approved an agreement with Arts Consulting Group, Inc. (ACG) to conduct a Feasibility Study for the CRA Warehouse. ACG s scope of services called for the completion of the study in three phases. Phase 1 included the Needs Assessment and Facility Feasibility, Phase 2 included estimates of Capital Costs and Operating Expenses, and Phase 3 was originally to include a Funding and Fundraising Feasibility Assessment. The Warehouse was originally intended to accommodate the programs and activities taking place at the Arts Garage when it relocated, but the Arts Garage is in the process of negotiating a purchase and/or lease agreement for its present location and is anticipated to remain there. Over the course of the ACG study and following several modifications to the concept plan for the building, Phase 3 was amended to include a Facility and Business Operating Plan. On October 24, 2013 the CRA Board accepted and endorsed the final component of the ACG study, the Phase 3 Facility and Business Operating Plan (see Exhibit E). In addition, the board s consensus was to implement the concept plan for the build out of the space as prepared by local architects Currie Sowards Aguila. The Plan is to create a Visual Arts and Business Incubator Facility, which includes co-working (shared) workspace/maker space. The estimated cost of the full build out is $2.8 million (including $300,000 for furnishings and equipment). The CRA has budgeted $1.8 Million Dollars in FY15-16 toward the renovation in FY Artist studios and galleries have established in the surrounding area. The Arts Warehouse is envisioned to become an anchor for this area. 5

6 1-3 PROPERTY DEVELOPMENT APPROVALS AND ENTITLEMENTS The Property received Site Plan certification from the City of Delray Beach Planning and Zoning Department on September 25, 2015 for an arts incubator (see Exhibit C). Complete construction documents for this 16,770 square foot arts incubator have been submitted to the Building Department for review with permit issuance anticipated in the near future subject to payment of fees and selection of a qualified general contractor by the CRA. If the use(s) proposed in the Letter of Interest is not consistent with the existing zoning approvals on the Property, the Letter should explain in detail what amendments to the existing certified site plan and/or modification(s) to the current construction drawings will be needed to achieve the proposed use(s). Site, landscaping, and floor plans and building elevations from the building permit application are provided in Exhibit D. However, a CD containing a complete set of the building permit application, specifications, and probable cost estimates in pdf format may be purchased at the CRA for $ The above information is not being provided to discourage the submission of Letters of Interest for the Property but to provide background regarding the current status of the Property and acknowledge that modifications may be required. Any rezoning or other establishment of land development regulations will be controlled by applicable legal and statutory requirements. 1-4 PROPERTY VISITS Organizations will be able to visit the Property. Contact the CRA via at shaw@mydelraybeach.com ( contact strongly preferred) or by telephone at to arrange an appointment for an escorted Property visit. The Property visit escort will not answer questions about the Property or the Letter of Interest process. 1-5 LETTER OF INTEREST REVIEW AND PRESENTATIONS Depending on the number and the contents of the Letters of Interest that are submitted to the CRA, the CRA may establish a Review Committee to evaluate and recommend up to five (5) Organizations to the CRA Board. The Review Committee will evaluate the Letters of Interest in accordance to the information requested in Section 1-1, Invitation to Submit Letters of Interest. A maximum of five (5) organizations submitting Letters of Interest may be offered the opportunity to discuss their Letter of Interest in person before the CRA Board at a meeting as part of the review process. These discussions will provide an opportunity for the Organization and CRA Board to review the contents of the Letter of Interest and to exchange information related to development of the Property. 6

7 LETTER OF INTEREST SUBMISSION AND WITHDRAWAL 2-1 DEFINITIONS For the purposes of this document, "Organization" shall mean any entity and/or person submitting a Letter of Interest in response to this RLOI with respect to the proposed development of the Property. Letter of Interest shall mean the response to this RLOI made to the CRA by an Organization. 2-2 LETTER OF INTEREST SUBMISSION The CRA will be receiving submissions of Letters of Interest on or before 2:00 P.M. (EST) on January 26, 2016 at 20 N. Swinton Avenue, Delray Beach, FL 33444, attention Ms. Thuy Shutt Letter of Interest for Arts Warehouse. Organizations may withdraw their Letter of Interest by notifying the CRA at any time. An or letter withdrawing a Letter of Interest must be sent by an authorized representative of the Organization. All Letters of Interest will become a public record of the CRA upon receipt and are subject to public disclosure consistent with Chapter 119 of the Florida Statutes. 2-3 LETTER OF INTEREST COSTS Neither the CRA nor any of its officers, officials, employees, or agent shall be liable for any expenses incurred in connection with any Letter of Interest. 2-4 INQUIRIES Questions and inquiries concerning the RLOI shall be submitted in writing and directed to the CRA via to shuttt@mydelraybeach.com, or Thuy Shutt, Assistant Director, 20 N. Swinton Avenue, Delray Beach, FL for receipt no later than January 20, 2016, 5:00 P.M. (EST). Oral explanations, information and instructions shall not be considered binding on the CRA. All prospective respondents are encouraged to independently verify the accuracy of any information provided. Neither the CRA nor any of its agents or employees shall be responsible for the accuracy of any oral information provided to any respondent. 2-5 NO LOBBYING CONTACT PERMITTED As to any matter relating to this RLOI, any Organization, team member, or anyone representing an Organization is advised that they are prohibited from contacting or lobbying the CRA Chair, any CRA Commissioner, CRA staff, or any other person working on behalf of the CRA on any matter related to or involved with this RLOI. For purposes of clarification, a team s representatives shall include, but not be limited to, the Organization s employees, partners, attorneys, officers, directors, consultants, lobbyists, or any actual or potential subcontractor or consultant of the Organization and the 7

8 Organization s team. All inquiries must be in writing in accordance with Section 2-4, Inquiries. Any violation of this condition may result in rejection and/or disqualification of the Organization. This No-Lobbying Provision is in effect from the date of publication of the RLOI and shall terminate at the time the CRA selects a proposal, rejects all proposals, or otherwise takes action which ends the solicitation process. 2-6 LOCAL BUSINESS PREFERENCE All bid proposals must indicate whether or not the Organization is a Local Business via submittal of a Certification Statement pursuant to Section 36.14(F) of the City of Delray Beach Code of Ordinance. A Local Business is defined in Section 36.14(A) of the Delray Beach Code of Ordinances. (Ordinance No , REGISTRATION AND ADDENDA All interested parties must register their name, address, telephone number and address at the CRA office in order to receive any changes, additions, addendums or other notices concerning the RLOI. 2-8 CRA ACTIONS The CRA reserves the right to negotiate with one or more Organization based upon a Letter of Interest, to solicit and re-advertise for other Letter of Interests or to issue Requests for Proposals or other invitations for specific type(s) of improvement and/or development on the Property, to take no action, or to abandon the future development of the Property. The CRA may, in its sole discretion, waive or not waive any informality and irregularities contained in a Letter of Interest or in the manner of its submittal. INSTRUCTIONS FOR PREPARING LETTERS OF INTEREST 3-1 AUTHORIZED REPRESENTATIVE(S) OF ORGANIZATION The Letter of Interest should name all persons or entities involved in the Letter of Interest at the time of submission and identify the authorized representative(s) of the Organization. 3-2 LETTER OF INTEREST FORMAT Organizations should prepare their Letters of Interest using the following format: 8

9 A. Letter of Transmittal A letter which identifies the Organization proposing improvement and/or development of the Property as described in this document. The letter should also contain statements: 1. Identifying the uses, including any for profit uses, proposed to be placed on the Property; 2. Identifying the type of business making the Letter of Interest (e.g., sole proprietorship, partnership, not-for-profit, corporation, etc.); 3. Identifying whether the business is incorporated in Florida, another state, or foreign county. B. Letter of Interest Information The information requested below will assist CRA staff and the CRA Board in the review process. Submitting Organizations are also referred to Section 1-1, Invitation to Submit Letters of Interest, for information requested in the Letters of Interest. 1. Description of Use A narrative describing, in as much detail as possible, how the Property will be utilized, why the Organization is interested in developing and/or operating the Property, and what benefits the Organization and the CRA will derive from use of the Property in this manner. 2. Performance Commitments A narrative description of the parties to be involved with respect to the Letter of Interest and the status of their commitment and ability (financial and otherwise) to develop, operate, and/or occupy the Property within 12 months of execution of a developer, use, or lease agreement with the CRA. 3. Program of Operations A narrative description of the overall program for the operation and use of the Property as an arts incubator and/or other arts-related use shall be included in the Letter of Interest. 4. General Terms and Conditions Requirements A narrative description of any general leasing or other contract terms or conditions required by the Organization in order to achieve use of the Property as described in the Description of Use. This should include any proposed subleasing or other assignment of rights for any proposed use of the Property. 9

10 5. Qualifications of Organization A narrative description of qualifications of the Organization and team assembled to achieve Description of Use. 6. Statement of Financial and Performance Capacity The Organization shall submit a Statement of Financial Capacity, amount of additional funds to be leveraged with the CRA s investment, and the Organization s ability to achieve the Description of Use as part of the Letter of Interest. 7. References on Similar or Past Activities Specific references for the Organization in relation to its ability to successfully achieve the uses described in the Description of Use. These references should include: a List of previous projects/developments; b. Current pertinent professional and financial references (names, addresses, , and phone numbers) which the CRA may contact in relation to the Organization s qualification, experience with arts-related and/or incubator facilities, and financial capacity; and, c. Business associates (names, addresses, and phone numbers) which the CRA may contact in relation to the Organization s past performance in similar or related projects. 8. Additional Information Any additional information, if available, which the Organization considers pertinent for consideration of the Letter of Interest, such as: a. Conceptual or schematic designs for use of the Property, if approved site plan or current construction documents cannot be utilized; b. Preliminary or conceptual land uses by gross square footage, building heights, etc., if approved site plan or current construction documents cannot be utilized; c. A preliminary business plan, including pro forma capital and operating budgets indicating sources of revenues and required expenditures, over an extended period of years from commencement; and, d. General time frames for development and/or occupancy of the Property. 9. Summary A brief summary highlighting the most important elements of the Letter of Interest 10

11 shall be provided. REVIEW OF LETTERS OF INTEREST 4-1 PRELIMINARY TIMETABLE The CRA has adopted the following tentative schedule with regard to the Letters of Interest: A. On December 20, 2015, the CRA will publish this Notice of RLOI and make the document available via its website, Additional publication of the notice in print and other media may be made at the CRA s discretion. B. CRA will be receiving all Letters of Interest until 2:00 P.M. (EST) on January 26, C. The Review Committee will convene, if necessary, to evaluate the Letters of Interest and recommend up to five (5) Organizations to the CRA Board by no later than February 19, D. Depending on the number and the contents of the Letters of Interest that are submitted to the CRA, selected Organizations may be offered the opportunity to discuss their Letter of Interest in person with the CRA Board in a meeting to be scheduled in March The actual date of the meeting will be posted at City Hall, CRA Office, and on the CRA s website, E. After review, the CRA may take action, in its discretion, with regard to moving forward with the development of the Property, or it may elect to take no action. (Note: Dates above are subject to change registered Organizations will be notified by e- mail of changes, if any.) 11

12 EXHIBIT A PROPERTY LOCATION MAP 12

13 EXHIBIT B PROPERTY SURVEY SKETCH 13

14 EXHIBIT C SITE PLAN CERTIFICATION LETTER 14

15 15

16 EXHIBIT D BUILDING PERMIT PLANS 16

17 17

18 18

19 19

20 20

21 21

22 EXHIBIT E ACG FACILITY AND BUSINESS PLAN 22

23 Community Redevelopment Agency City of Delray Beach, Florida Arts Warehouse Visual Arts & Business Incubator Facility and Business Planning Study Phase 3 (Amended) Report CRA WORKSHOP PRESENTATION Arts Consulting Group, Inc. New York, NY Thursday, October 24,

24 Table of Contents Arts Warehouse Background page 3 Revised Facility Concept 4 ACG Study Phase 3 (Amended) 6 Other Arts and Business Incubators 18 Delray Beach Arts Warehouse Concept, Operations, Pro Forma Financial Estimate 32 Recommended Next Steps 38 2

25 Arts Warehouse Background In 2010, CRA purchased 15,007-square foot warehouse; located in Pineapple Grove Arts District; interior is primarily open space. Develop as arts center or arts incubator: could include galleries, studio space, multi-discipline performing venue (black-box theater), educational space; visual arts, theater, dance, film. CRA engaged the Arts Consulting Group, Inc. (ACG) in 2011 to undertake a comprehensive facility planning study. ACG formed a team with Designel architects, West Palm Beach, and Venue, arts project cost consultants in Tampa. 3

26 Delray Beach Arts Warehouse CRA s Revised Facility Concept June 2013 Eliminate need to accommodate Arts Garage performance functions. Simplify Arts Warehouse plan to focus almost exclusively on the visual arts Arts Warehouse space should be developed to provide: 1. Studio space for rent by local and visiting artists 2. Gallery space for temporary art exhibitions, installations and events 3. Classroom and workshop space 4. Gift shop 5. Food preparation space for catering events on site 6. Administrative office space 7. Space for rent to businesses that will collaborate with and/or provide support services to artists. 4

27 Delray Beach Arts Warehouse CRA s Revised Facility Concept June 2013 Deleting Performance Space: Costs and Revenues Reduce construction and operating expense budgets. Rough estimate of construction costs for converting for studio/business use: approximately $2.5 million. If necessary the improvements can be phased over several years as the budget permits.. Reduce ongoing revenues. Continued support from the CRA likely will be necessary. Modify ACG s existing business plan. Scale back or delete fundraising feasibility phase of ACG study. 5

28 Revised Arts Warehouse concept ACG Amended Phase 3 Study, Aug.-Sept Step 1: Conduct additional research into comparable existing visual arts studio facilities; interview selected executive and/or artistic leaders of such facilities. Step 2: Prepare revised financial operating estimate and plan, both short-term and long-range, for the ongoing operations and occupancy of the proposed Arts Warehouse facilities, with a primary focus on their use as visual arts studio, gallery, exhibition, rental, and commercial space. Step 3: Present Project Needs Assessment and Cost Estimates report to CRA staff and commissioners. 6

29 ACG Interviews: August-September, 2013 (in addition to those conducted in previous phases) Diane Colonna, Executive Director, CRA Irene Revelas, Founder and President StartupDelray Joe Gillie, President/CEO Delray Beach Center for the Arts, Inc. Vincent P. Nolan, Jr., Economic Development Director, CRA Shirley Talbert, Chief Marketing Officer, Palm Beach County Convention and Visitors Bureau Robert Currie, Principal, Currie Sowards Asguila Arechitects Pineapple Grove Arts District Board of Directors Vincent Cacace and artists of Artists Alley Julen Key, Gregg Weiss, Innovate Palm Beach 7

30 Summary of Regional Arts Community Programming and Space Needs, Desires (Revised) The consensus among arts and civic community interviewees is the need for an arts incubator space where leading-edge visual artists can create and exhibit new, possibly challenging, work. The vibrant artist community of Delray Beach is underserved because of the availability and affordability of artist studio space. Currently 20 artists are on a waiting list to acquire a space in Artists Alley. Those in the visual arts see the need for affordable artist studio space and for limited exhibition and retail gallery space, as well as space to interact with and educate the public about various visual arts forms, There is substantial interest in creating co-working (shared) workspace for makers that encompasses development of concepts through creation. These initiatives can expand beyond traditional arts such as pottery, sculpture, painting, and wood/metal working, to include culinary arts, textiles, and technology as it impacts the creation of art, including 3-D printing, robotics, and technologies yet to be developed. 8

31 Summary of Regional Arts Community Programming and Space Needs, Desires (Revised) Rental of work space, sale of artwork and memberships in programs and use of facilities of the Arts Warehouse were seen as a potential sources of revenue for the operation of the Arts Warehouse. There is general support for the Arts Warehouse to encompass a Business Incubator. A working prototype might including providing space, tools and a community of artists and business mentors to a broad community including novice artists to hobbyists to entrepreneurs a place where everyone is welcome to bring ideas to fruition or developing a career. The consensus of potential users and stakeholders is that the first priority of the Arts Warehouse remains artist studios. 9

32 Arts Warehouse programming concept proposed visual art uses Art studios, gallery, exhibit space and business incubator space on 2 levels in Arts Warehouse to include 24+ artist studios. Flexible Space One: Could accommodate exhibit and event space Flexible Space Two: Could accommodate classrooms, large specialized studios as coworking space, and working business incubator space. Entrances and access should be created from the South and West sides of the Warehouse. Additional natural light through the addition of windows on the West side is desirable. A catering kitchen to meet the needs of artists, visitors and outside renters of facilities is desirable. 10

33 Arts Warehouse programming concept proposed visual arts uses Artists-in Residence (AIR) program: Established artists pay monthly fee for studio use Artists apply for juried-in residencies AIR applications open to artists worldwide AIR participants would be asked to exhibit new work and interact with public, give demonstrations, teach, etc. Provides opportunities for collaboration among artists of all disciplines Space utilization: Artist studios, including specially-equipped studios for printmaking, ceramics, kilns Art instruction space for various disciplines Office and meeting space resources for business incubation Exhibition space Accommodate temporary exhibitions, site-specific art installations Limited art retail sale opportunities 11

34 Other events Arts Warehouse could accommodate 12 New programming and events: Events, exhibits, seminars, workshops as part of the vitality of Artists Alley and done collaboratively with the artists and businesses of Artists Alley. Contemporary Art Fair Delray Beach version of Art Basel/Miami, multi-artist biennial exhibitions; possible connection with Art Palm Beach. Arts Warehouse would anchor contemporary arts events throughout the City in under-utilized spaces (e.g. SW 5th Ave. Pavilion, Veterans Park) Festival programming connect Arts Warehouse to current Delray Beach annual festival and events schedule and cultural venues: Downtown DB Festival of the Arts (January) Garlic Festival (February) Arts festival (throughout the year) AW would work with OSS, Spady Museum, DB Playhouse, and other existing cultural venues to create new city-wide events, festivals

35 Preliminary Facility Concept Description Create space for multiple artist studios. Create transparent and welcoming lobby/entrance(s) on west and south side as gateway to arts complex and neighborhood. Artists strongly urge creating an entrance on west side, open to Artist Alley and outdoor activities. Create load-in/service spaces in north-side alley at high-volume bays. Create flexible spaces for future space and program build out. Provide for catering kitchen. Program requirements dictate layering of spaces on limited site area available. Transparency and interesting forms and flow lead arts patrons through dynamic and educational Arts Warehouse experience. 13

36 Arts Warehouse concept Questions, Issues Arts Warehouse as world-class space vs. initial more basic vision. Importance of community outreach, youth education, and inclusiveness in Arts Warehouse mission. Need for multiple flexible spaces to serve multiple missions; implications for Arts Warehouse design and development. Importance of collaboration with artists from Delray community in Artist Alley and other downtown artists and galleries. Separation of Arts Garage from Arts Warehouse. 14

37 Arts Warehouse concept Questions, Issues Limited capital resources of CRA at approximately $2.5 million will not be sufficient to renovate, rehab, build out and equip the Arts Warehouse for its intended usage. Need to create long-term sustainable operational model. Essential need for CRA to identify public-private partnership with existing or new nonprofit organization for Arts Warehouse development, funding, fundraising and management. 15

38 Revised Construction Cost Estimate The cost of building the infrastructure of the Arts Warehouse is estimated at over $2.5 million: Enable Studio build-out Provide insulation Install HVAC, plumbing Create a partial second floor Provide catering kitchen, equipment Bring building up to 2013 building codes Provide legal access to the facility 16

39 Delray Beach Arts Warehouse Conceptual Plan: Suggested Space Use Studios: Gallery: Multi-purpose: Maker space: Business Incubator: 9,200 SF (24 studios, av. 383 SF) 3,500 SF 1,800 SF 1,300 SF 440 SF 17

40 Other artists communities can serve as models for Arts Warehouse Incubator Artists communities and residencies Provide places where artists of all disciplines can work on their art. Serve as research-and-development labs for the arts, providing artists with time, space, and support for the creation of new work and the exploration of new ideas. Assist the arts entrepreneur in the creation of art and the business of art. According to the Alliance of Artists Communities: An estimated 500 artists communities in the US and approximately 1,000 worldwide 15,000 artists are in residence each year Residencies provide $40 million in support to artists annually 60% are in rural areas and small towns, while 40% are in urban areas 90% have public programs that engage the local community 18

41 Selected Arts Warehouse Models for Arts Incubator While many arts incubator spaces in the U.S. are larger than the Arts Warehouse space, the DBAW can learn and draw from the experience of hundreds of models. Many of these models now incorporate aspects of a business incubator as part of their programs and spaces. Particularly relevant to the Arts Warehouse concept are: The Beloit Arts Incubator, Beloit WI The Bauer, Kansas City, MO Batavia Industrial Center, Batavia, NY ADX Portland, Portland, OR The Armory Art Center, Palm Beach, FL ACG has gathered background information on these and other arts centers: AIR programs and requirements, artists studio and equipment specifications, staffing, funding. Providing flexible spaces that could accommodate makers and a business incubator could make the Arts Warehouse a relevant significant enhancement to the arts and economy of the Delray community. 19

42 Selected Incubator Uses Organization Type Artist Studios Gallery, Exhibition Space Business Incubator Beloit Arts Incubator NFP The Bauer (on site of former Arts Incubator of Kansas City) Classrooms /Education Retail FP Batavia Industrial Center FP ADX Portland FP The Armory Art Center NFP 20

43 Beloit Fine Arts Incubator, Beloit, WI 501(c)(3) organization run entirely by volunteers. Its mission is to provide resources to help emerging artists, offer community education and cultural events, and expand on the "Arts Center" theme. BFAI offers affordable studio space for rent for artists to practice, create, exhibit and sell their art. 21

44 Beloit Fine Arts Incubator, Beloit, WI Description; rental rates: 16 cubicles and studios: $ a month Large open Gallery: $200 Upstairs Conference Room and several classrooms; rented by event Commission split 70/30 on sale of artwork Kitchen for artists Revenue from classes: $100 and up Workshops: $30-$50 Open Studio Nights: $5 entry fee to work on artist's individual works 22

45 The Bauer, Kansas City, MO Three-story building; 30,000 sq. ft.; nestled in the heart of the creative block of West 18th Street; currently undergoing renovation Historic Bauer Machine Works building provides large studios; available to rent as artist studios, gallery, retail space and office space Each of the 40 studios/offices/retail spaces has large windows with panoramic views of the Kansas City skyline. Monthly rental: $1 square foot. Third floor rental event space (The Bride and the Bauer) overlooks the new performing arts center Large Rental Space: $1,800-$3,500 per event Adjoining parlor: $350 per event Catering Kitchen Each floor has common area with small kitchen 23

46 Batavia Industrial Center, Batavia, NY 24 The Batavia Industrial Center, commonly known as the first U.S. business incubator. For-profit organization. Opened in Batavia, NY, in Accommodates manufacturing, graphics concerns, computer software enterprises, glass-making and laser operations, artisans, craftspeople, musical instrument instructors, local organizations. Also woodworkers, painters, sculptors, metal workers, muralists, and others who make things can turn their hobbies into careers and create jobs as their operations grow. Is creating a new 8,000-square-foot Artisan Center inside its Harvester Avenue facility: Reaching out to the arts community by providing affordable studio, gallery space, and learning center; Housing a community theater that will seat 144 people. Function as a gathering place for adults and children to attend classes, performances, workshops and other arts-related activities and events.

47 Batavia Industrial Center, Batavia, NY 1 million square feet Studios rent for $145-$195 per month Business Group manages other facilities and provides coaching for a fee to Arts Incubators. Business Incubator for small business leasing (500,000 sq. ft. leasable space), and providing workshops, resources, consultants. Industrial, Commercial and Office Space Advises sensitivity to Individual markets in determining cost of studios 25

48 ADX Portland, Portland, OR 12,000-square foot facility. Founded in For-profit. High-profile designers work alongside students, retirees share their knowledge with novice builders, and entrepreneurs mix with hobbyists. Serves local artists trying to turn their hobbies into careers. Incubator-type business for: building a community of thinkers and makers, those who want to explore their art, prototype their designs, and bring them to fruition, those who want to explore their art, prototype their designs, and bring them to fruition. Emphasis is on industrial, metal, wood, sewing, technical. We give you access to the tools, the space, and the community to help you create anything you dream up. (ADX website) 26

49 ADX Portland, Portland, OR Membership: $360 a year All access to factory floor and work benches Unlimited access $175 a month Daily passes available Gang of 10 space for $250 a month for desk 24/7 access for freelancers, independent contractors, and professionals of all backgrounds Ninkasi Bettyer Living Room available for rental to ADX community Event space for 250 is fully booked through

50 The Armory Art Center, West Palm Beach, FL Mission: Provide high-quality visual art school and art gallery services that stimulate personal self-discovery and generate knowledge and awareness of art as part of life. Is transforming abandoned classic Art Deco structure into a space for art classes and art exhibitions. Incorporated as a not-for-profit on December 1, Opened in educating students, exhibiting works of art in more than 400 shows. Visiting Master Artists from all over the United States have taught special classes; there have been more than 30 Artists-In- Residence. Three distinct buildings, including a large 4,000 sq. ft. multipurpose hall. 28

51 The Armory Art Center, West Palm Beach, FL Rates: Membership: starts at $35-$100 Classes: starts at $15 per session Workshops: $100 Open Salons to work on art: $10 Patron levels: up to $1,000 Multiple Galleries available for rent from $500-$3,500, including a banquet facility All access of facility rental available: $5,000 per event 29

52 Conclusions Selected Incubators Incubators in all instances are highly individualized to needs of specific community. Each incubator has a distinct specialty or defining attribute. Incubators with larger square footage are generally the product of large for-profit companies specializing in the re-working of warehouses or other large commercial buildings. Rental rates of studio and event space are reflective of the demographics of each community and the level of involvement of the visual artists in the community. 30

53 Conclusions Selected Incubators The concept of arts incubators dates back 50+ years. Some institutions have had to modify plans over the years, either commencing anew or relying heavily on volunteers. Sustainability is attained in multiple ways, primarily with not-for-profit management with a requisite fundraising and membership component. 31

54 Governance and Management Model 32 Delray Beach CRA retains ownership and control over Arts Warehouse building: CRA serves only as owner / landlord. AW is managed as a rental property. Lean operating staff (manager, assistant, maintenance) ACG recommends that the CRA identify, or create, a not-for-profit partner to: Help in the design and funding of the building of the infrastructure and further structural and FFE enhancements of the Warehouse, Serve as manager of the space, its programs, and activities. The not-for-profit could be one currently in existence or a new not-for-profit with the building and operation of the Arts Warehouse as its defining mission.

55 Delray Beach Arts Warehouse Financial Operating Assumptions 1. Expenses: a. Minimal staff for operations. b. Facility operations, renter services. 2. Operating income derives from: a. Space rental: studios, classrooms, business incubator space to artists, makers/doers, operating entity/not for profit, community users b. Rental of gallery space: community, corporate, private. c. Ancillary income of concessions, gift shop, percentage of art sales. 4. CRA responsibilities as reflected in financial operating estimate: a. Serve as landlord only, not as a program presenter or producer. An outside programming partner would be necessary. b. Provide financial operating support for building operation. Amount of CRA operating support would decline if revenues increase. 33

56 Delray Beach Arts Warehouse Pro Forma Financial Operating Estimate: Expenses OPERATING EXPENSES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Total Staffing Costs $214,340 $220,770 $227,393 $234,215 $241,242 Total Institutional Advertising & Promotion $19,200 $20,040 $20,918 $21,837 $22,798 Total, Facilities Operations $105,700 $110,171 $114,841 $119,720 $124,816 Total, General & Administrative $66,600 $68,598 $70,656 $72,776 $74,959 TOTAL EXPENSES $405,840 $419,579 $433,809 $448,547 $463,814 34

57 Delray Beach Arts Warehouse Pro Forma Financial Operating Estimate: Earned Income: Rental Revenue EARNED INCOME RENTAL REVENUE Visual Arts Spaces--Artist Studios; Classrooms: Business Incubator Space Av. Monthly Rent YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Visual Art Studios: 24 studios (av. 383 SF) $500 $144,000 $151,200 $158,760 $166,698 $175,033 Classrooms: 3 Classrooms available for rent $1,000 $36,000 $37,800 $39,690 $41,675 $43,758 Business Incubator Common Space, Equipment (440 SF): Annual Membership--access to common spaces: $200 $20,000 $21,000 $22,050 $23,153 $24,310 Daily, weekly passes $20,000 $21,000 $22,050 $23,153 $24,310 Total Rental Revenues: Studios, Classrooms, Business Incubator Members, Passes $220,000 $231,000 $242,550 $254,678 $267,411 Note: Individual studio rental rates may vary depending on the size of the space and the artists amenities and equipment provided. 35

58 Delray Beach Arts Warehouse Pro Forma Financial Operating Estimate: Earned Income: Rental Rates Suggested Rental Rates: Gallery Daily NFP Rate Daily Commercial Rate Exhibition daily rate $500 $750 Meeting rate $250 $500 Art Fair $0 $1,500 Performance--commercial presenter $0 $750 36

59 Delray Beach Arts Warehouse Pro Forma Financial Operating Estimate: Earned Income: Gallery Rental, Ancillary Revenue, Funding Gap RENTALS No. of Days/Year YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Rental Rental Rental Rental Rental Revenues Revenues Revenues Revenues Revenues Total, Rental Revenues: Gallery 36 $26,500 $27,825 $29,216 $30,677 $32,211 Total Ancillary Earned Revenues $22,500 $23,875 $25,261 $25,659 $26,069 TOTAL EARNED INCOME $269,000 $282,700 $297,028 $311,014 $325,691 TOTAL EXPENSES $405,840 $419,579 $433,809 $448,547 $463,814 FUNDING GAP ($136,840) ($136,879) ($136,781) ($137,534) ($138,123) 37

60 Arts Warehouse Recommended Next Steps 1. CRA approves or amends current Arts Warehouse plan; votes to fund next stage of planning and design. 2. CRA engages counsel to assist with identification or formation of the Arts Warehouse management organization. 3. CRA identifies existing nonprofit organization to manage Arts Warehouse programming, OR 4. If no existing organization comes forward, CRA takes first steps to create a new nonprofit organization to manage Arts Warehouse programming. 5. Architect proceeds to Design Development phase. 38

61 Delray Beach Community Redevelopment Agency Delray Beach Arts Warehouse Questions? Comments? Suggestions? THANK YOU! 39