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HomeMy WebLinkAboutOES 11-11 City Report To Executive Committee PICKERING Report Number: 'OES 11-11 Date: February 14, 2011 53 From: Everett Buntsma Director, Operations & Emergency Services Subject: Pottery Studio - Pickering Recreation Complex Durham West Arts Centre Inc. Proposal - File: A-1440 Recommendation: 1. That Report OES 11-11 of the Director, Operations & Emergency Services be received; 2. That Council endorse the proposal from.Durham West Arts Centre Inc. to relocate to the Pickering Recreation Complex and use the pottery studio to operate pottery and art programs; 3. That the Mayor and the Clerk be authorized to execute a licence agreement to permit Durham West Arts Centre Inc. to use the pottery studio to operate pottery and art programs at the Pickering Recreation Complex from April 1, 2011 to March 31, 2014, that is in a form and substance acceptable to the Director, Operations & Emergency Services and the City Lawyer. 4. That the appropriate officials of the City of Pickering be authorized to take the necessary action to. give effect hereto. Executive Summary: Guida Pirita (Potters Studio) has been using the pottery studio at the Pickering Recreation Complex to provide pottery programs since 2002. Guida Pirita has provided notice to terminate the licence agreement to provide pottery programs effective March 31, 2011. Culture & Recreation staff have received a proposal from Durham West Arts Centre Inc. (DWAC) to operate the Pottery Studio, maintain the existing pottery programs and offer additional programs. j Report OES 11-11 February 14, 2011 Subject: Pottery Studio - Pickering Recreation Complex 54 - Durham West Arts Centre Inc. Proposal Page 2 In order for the existing pottery studio operation to be maintained, the Operations & Emergency Services Department recommends that a licence agreement be initiated with Durham West Arts Center Inc. Financial Implications: Based on a review of the historical business financials of the Pottery Studio, DWAC proposes to build it into a self-sustaining operation through developing a significant number of new and diverse classes along with improved channels of marketing. DWAC projects this will,take two years and in the short-term DWAC has requested rent relief in 2011 ($0 for Q2 thru Q4) and 2012 (partial annual rent of $4,800). DWAC will be in a position to pay the full annual rent of $9,600 by 2013. The rental rate for the existing licence agreement with Guida Pirita is $750 per month plus HST ($9,000 annually plus HST). Revenues: 2011 9 months @ $0 per month $ 0 2012 12 months @ $400 per month $ 4,800 2013 12 months @ $800 per month $ 9,600 2014 3 months @ $800 per month 2,400 $ 16,800 Sustainability Implications: Durham West Arts Centre Inc. will continue to offer pottery programs and develop new programs that enhance the Pickering Recreation Complex and are consistent with the City's mandate to encourage the development of active, healthy lifestyles. Background: Since 2002, Guida Pirita (Potters Studio) has been providing a variety of affordable pottery courses to a wide range of residents, young and old, from beginner to expert. Potters Studio has not been able to meet all the costs of operating the studio and programs offered. Guida Pirita has provided notice to terminate the licence agreement to provide pottery programs effective March 31, 2011. CORP0227-07/01 revised Report OES 11-11 February 14, 2011 .Subject: Pottery Studio - Pickering Recreation Complex 55 - Durham West Arts Centre Inc. Proposal Page 3 The pottery programs operated by Guida Pirita have enhanced the role of the Pickering Recreation Complex by providing a creative outlet and environment for a wide range of residents, young and old, from beginner to expert. Many groups and hundreds of individuals have benefitted from participating in a variety of affordable courses offered. Culture & Recreation staff have received a proposal from the Durham West Arts Centre Inc. to take over the pottery studio operation, maintain the existing pottery programs and offer additional programs. Durham West Arts Centre (DWAC) is an incorporated not for profit charitable organization. DWAC supports the arts and culture of Durham West through innovative programming and a focused mission to build and support an architecturally significant visual and performing arts centre in our region. DWAC proposes relocating from their current location at the Greenwood Library to the Pottery Studio at the Pickering Recreation Complex. A move to the downtown location will increase their visibility and solidify their place as the hub of the arts community. DWAC will maintain the pottery programs and also add new classes in a variety of art disciplines. DWAC have identified that a move to the Recreation Complex will create new fundraising opportunities for the organization, including access to new grants which cannot be obtained in their current location. A new heightened visibility and closer proximity to fundraising and partnerships, will move forward a viable cultural future within the City of Pickering. The Director, Operations & Emergency Services and Division Head, Culture & Recreation recommend that a licence agreement be initiated with Durham West Arts Centre Inc. effective April 1, 2011 to ensure the pottery programs can continue to operate. Attachments: 1. Durham West Arts Centre Business Plan CORP0227-07/01 revised Report OES 11-11 February 14, 2011 Subject: Pottery Studio - Pickering Recreation Complex 56 - Durham West Arts Centre Inc. Proposal Page 4 Prepared By: Approved/En ed By: ron Milton Everett Buntsma Supervisor, Facility Programs Director, Operations & Emergency Services Stephen Ids Division Head, Culture & Recreation SR:lg Copy: Chief Administrative Officer Recommended for the consideration of Pickering - y Cou ci ©r/ Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised ATTACHMENT #._J__ 70 REPORT # 57 Durham West Arts Centre Relocation. To the Pickering Pottery Stu. i.c Business Plan nJanuary 1 ATTACHMENT # i T O REPOR f# O CS 11- 1 k 58 PQ~~ a of i 1. Executive Summary 1.1 Proposed Relocation to Pickering Pottery Studio Durham West Arts Centre (DWAC) supports the arts and culture of Durham West through innovative programming and a focused mission to build and support an architecturally significant visual and performing arts centre in our region. Through theatre, dance, visual, literary and performing arts programs, we will enhance and support an arts audience in Durham West, while building community and business partnerships to construct Durham West Arts Centre. To accomplish our mission, we seek the partnership of the City of Pickering to allow our expansion and move to the Pickering Pottery Studio to continue and develop new programs. A move to the downtown location will increase our visibility and solidify our place as the hub of the arts community. The Pickering Pottery Studio presently runs pottery classes. We plan to maintain the pottery programs and also add present and new classes in a variety of art disciplines. While using the facility as our base, we envision being able to offer additional programs in the community in locations including schools, retirement homes and seniors' centres. The move will allow us to bring together our signature arts programs, such as Roots and Drums, the fall and spring studio tours and Art Noel, along with our other cultural, heritage and arts programs to a central downtown location. The new location will provide high visibility to increase our membership, reach our intended audience, build awareness and implement new programs. A central location allows the public better access and helps us build and encourage our existing. partnerships with the City of Pickering. With a downtown location for the arts centre, we can better contribute to the cultural and economic vitality of the Pickering community and support the City's vision of a sustainable and vital downtown. 1.2 Request for Rent Relief from City of Pickering Based on review of the historical business financials of the Pottery Studio, it is not a viable business as it is operating now. DWAC proposes to build it into a self-sustaining operation through developing a significant number of new and diverse classes along with improved channels of marketing. 2 i ATTACH MEN`T' # CO REPORT #_U S 1 ~ - 11 Page r a 59 However, this is projected to take two years and in the short-term DWAC requests financial support from the City of Pickering in terms of rent relief in 2011 ($0 for Q2 thru Q4) and 2012 (partial annual rent of $4K). We conservatively forecast that the additional revenues will reduce the need for supplementary grant revenue by 2013 and that DWAC will be in a position to pay the full annual rent of $10K. 2. Organization Summary 2.1 Legal Entity The Durham West Arts Centre is an incorporated not-for-profit charitable organization. 2.2 Organization History Durham West Arts Centre (DWAC) was incorporated in 2003 as a not-for-profit organization. With support from the Ontario Trillium Foundation the Rotary Club of Pickering, the City of Pickering, the Ontario Power Generation and various other stakeholders, DWAC started its operations in 2004. DWAC has two arms: DWAC Inc. is the programming and operations arm and the DWAC Foundation raises the funds necessary to build the proposed centre. The two organizations share the same mission and vision and are working collaboratively to that aim. 2.3 Mission and Vision Durham West Arts Centre's mission is to bring the arts of Durham to the world and the world of the arts to Durham. Our vision is to support, promote and present world-class, contemporary arts and culture. As well as advocating for all of the arts of Durham West, DWAC will be a home for exhibits, performances, education, classes and workshops. DWAC will also build community partnerships and we will continue to increase our audience and membership, be sustainable and champion the intrinsic need of arts and culture in our community. The Durham West Arts Centre will contribute to the life of the community through encouraging and developing creativity as a way of seeing and thinking. It will be an inclusive and welcoming destination that promotes cultural exchange and understanding. The Centre will reflect who we are as a society and provide opportunities for personal expression for all ages. 3 ATTACHMENl-rr_I_ URc Olz-r# _0.ES 0-Ik 2.4 Partners Our partnerships in the Durham West community have been many and varied and have helped us achieve our present credibility and the ability to grow and reach the arts audience of the region. Some of these partners include: The Ontario Trillium Foundation, the City of Pickering, the Rotary Club of Pickering, the Ontario Power Generation, Veridian, Footprints, Pine Ridge Arts Council, Durham Festival Theatre, Durham Sustainability,, Cultural Expressions Art Gallery, the Pickering Library, SNAP Pickering and Ajax, the Ajax-Pickering News Advertiser, Dickson Printing, Media Gone Mad, Curry's Art Supplies and a myriad of other businesses within our community. 2.5 Membership Our membership has grown to almost 250 in the last year and through our joint partnerships we have over 2,000 members. 2.6 Location DWAC is currently located at the Greenwood library, a branch of the Pickering library system. 3. Services DWAC runs a myriad of arts-related programs and services for people of all ages. 3.1 Current Services We presently run the Durham West Studio Tour biannually. This program opens the doors of artists in the region to the public by promoting them and their work. The studio tour is promoted region-wide through advertising, articles and 6,000 brochures. This arts program has been successful in enhancing arts and culture in our region and bringing valued tourism dollars to the artists directly and to our region indirectly. We are seen provincially as a regional arts centre and gallery within the midst of Durham West. We have held art shows with a regional flair and have produced a high-profile exhibition called The Thomsons of Durham. This show focused on world-famous artist Tom Thomson, who was born in Pickering, his family and his connections to this region. This high-profile exhibition was complemented with a high-quality book and a curatorial-significant study of the Thomson family and their connection to this region. 4 I ATTACHMENT b E S r 1- I 1 61 Reading and Remembrance is now an Ontario-wide school program reaching more than 70,000 children and youth. The program focuses on literary and creative arts programming and enhances the culture and heritage of Pickering and beyond. , Roots and Drums is a multicultural music and heritage arts concert. This program's special focus is on embracing and supporting all of the diverse arts and cultures of Durham West. The benefit of this program is the fact that it brings differing cultures and religions together under one roof and builds a bridge between them. Music Madness is a music program that fosters the winners of the Rotary music competition and brings them to a wide audience through a unique partnership with the Pickering Town Centre. This program is building and enhancing youth arts and providing inspiration and free educational services to the community. We have also provided a large number of yearly art exhibitions, enhancing the visual arts experience for youth, adults, the elderly and minorities of our region. DWAC runs art classes and workshops, reaching out to our local and regional audiences. Our arts and culture programs are growing in response to the needs of Durham West and are expanding to those needs both within and outside of Durham Region. This year alone, DWAC has reached well over 100,000, people in our area through programming and specific events targeted at promoting arts and culture in Durham West. We have participated and partnered with various events such as Pine Ridge Arts Council's spring outdoor art show, spring studio tour, Music Madness, Art in The Park, Rotary Ribfest, fall studio tour, the Dinner Plate Project, Reading and Remembrance, Art Noel and Roots and Drums. We have just implemented a new website that gets 1,000 hits per month and is the arts hub of the community. We advertise local and regional art shows and events and have created social media products to that aim as well. We have a cyber gallery and interactive space to advertise and promote our members to the World Wide Web. We have made connections and partnerships all around the world. Durham West Arts centre is proposing to move from our present Greenwood Library location to a downtown and more central location at the Pickering Pottery Studio in the Recreation Complex. We will purchase the pottery studio business and partner "with the City of Pickering to continue and enhance the present art programs being conducted. DWAC will bring all of our present events and varied arts programs to this new centre and make the pottery studio location the focus and hub of all arts activities in Durham West. 5 ATTACHMENT Oe S - 1 6 2 _ 3.2 Additional Services From Pottery Studio Location DWAC will not only continue the present pottery programs being taught, but also reorganize the space to hold more classes for children, youth and adults with varied needs. We will do this by significantly increasing the number of classes available and reaching out to all of the art groups, public and private schools, retirement and long-term care homes throughout our community. 3.2.1 Student Classes DWAC envisions adding a full roster in the summer and during March break for children to take part in pottery camps and other activities. By bringing school groups to us and introducing more on-site classes in schools and in other centres, we can broaden our reach and better connect with our community. Presently all of the arts in all schools are feeling the brunt of cutbacks and this venture will allow DWAC to help fill that void. Expanding the scope, use and course offerings both within and beyond the studio space, will also increase the revenue of DWAC and increase our overall sustainability vision. 3.2.2 Broad Diversity of Arts Classes Having the studio space and a large number of artists willing to teach a broad range of art programs, allows DWAC to offer all of the other arts in demand within Durham West. We would use the space to hold the following classes for adults, youth and children for after school, weekend and day programming: • watercolour beginner • watercolour intermediate • watercolour advanced • acrylic beginner • acrylic intermediate • acrylic advanced • beginner oil painting • intermediate oil painting • advanced oil painting • mixed media painting • jewellery workshops • beginner drawing class • intermediate drawing class • advanced drawing class • encaustic painting class • multiple children's arts classes • full after school arts programming 6 XCIACHMENe r,J_ iv,trr`ORT# f 63 A pool of local instructors that are willing and available to be part of this program can teach the proposed classes. These courses can be taught at the studio and easily moved into schools and other centres in the region. The goal is to have classes in the studio of all varieties, meeting the needs of all ages and cultures within the community. DWAC's initiatives for learners of all ages and cultures can be met at this location and with this partnership. Other art centres in the target market are not offering this variety of classes. 4. Market Summary The core target market for the above services and art classes is Pickering and Ajax along with nearby residents in Durham (mainly Uxbridge and Whitby) and eastern Scarborough and eastern Markham. Besides the current Pottery Studio classes in Pickering the only other centres offering arts classes in the market area are: • Creative Arts Centre, Pickering Village, Ajax • Station Gallery, Whitby • Curry's Art Store, Whitby These centres only provide a limited number of classes and do not meet the full local market demand for a more diverse range of classes. According to the 2005 "Economic Impact and Needs Analysis Study for Performing Arts Centre in Ajax/Pickering Area", Durham residents spend $16.8 million annually on the arts including the visual arts, music, theatre and dance. At least 35% of this is spent outside Durham due to inadequate facilities and services within Durham. Full service arts classes are offered outside Durham such as in Unionville (western Markham) that can currently attract West Durham residents. The need for a. Pickering downtown-based arts centre with a diverse offering of arts classes is quite evident and presents an ideal opportunity for the City of Pickering and DWAC. 5. Strategic Benefits The following are key strategic benefits to DWAC and the City of Pickering that accrue from relocating to the downtown location. 7 ATTACHMENT; l "~°~c! :r vS I ` - I I 6 4 5.1 Build Profile Durham West Arts Centre's move to the Pickering Pottery Studio will provide closer access to the public and a storefront location. This will allow us the opportunity to build our membership and audience and further stimulate the impetus for the construction of the arts centre. Offering classes and being in the Recreation Complex allows us to reach a wider base from learners to artists to patrons to the community at large. DWAC intends to be closer to community members and engage them in the common cause of building an arts centre and creating increased cultural and recreational activities for all ages, abilities and cultures. The arts centre can attract additional traffic to the Recreation Complex, which can support increased community utilization of the entire facility. 5.2 Create Operational Fundraising Opportunities Running the pottery and arts studio will also allow DWAC the increased opportunity to raise funds from partnerships, grants and donations. We will be seen as a viable centre by all of the granting bodies, providing us opportunities for numerous arts, heritage and cultural grants that have been presently closed to us. A central location and higher profile allows DWAC an increased ability to build partnerships and donations to fulfill our mission and vision. This provides the needed short-term foundation from which DWAC can grow and become a self-sustaining organization. 5.3 Strengthen Partnerships By fostering and meeting the demand for arts, crafts and cultural programs, we can engage that audience. For instance, we have a strong partnership with the Pickering library system and could use their wall space to showcase our ongoing art exhibitions. Being located. in Greenwood has hampered some partnerships and bringing us downtown will allow us to enhance, increase and build more programs and partnerships. The displays in the library system can attract more community members to the libraries to better utilize their services. 5.4 Foster Sense of Community We presently have up to 100 volunteers working on DWAC's behalf. This central location in the downtown will foster volunteerism and create a sense of community for the artists of Durham West. A central location will allow DWAC to 8 l ATTACHMENT # ' TO REPORT 4-01-7- S ~ 1 ' l ~e 1 o-F ( Z1. 65 engage more community members, businesses and partners in the creation of a thriving artistic downtown. This is a crucial element in supporting a sustainable, vital downtown core. 5.5 Enhance Economic Prosperity DWAC's move to the Pickering Pottery, Studio and its expanding programs will create enhanced employment opportunities and provide an economic multiplier effect by growing local spending on the arts. Additional classes create the need for more instructors and increases DWAC's revenue stream, allowing for more programs and even more job opportunities. A downtown location in Pickering will stop the leakage of arts dollars to other communities as residents find appropriate facilities and programs in their midst. The economic health of the community will be strengthened with employment, contract and entrepreneurial opportunities. 5.6 Advance Vision of a Performing Arts Centre The DWAC Foundation will have office space and a high profile hub from which the fundraising and partnership campaigns can be managed. A central location provides higher profile and close proximity to the public, donors, partners and officials that are needed to reach the projected goal of raising the funds necessary to build a performing arts centre. 6. Management and Personnel Both the DWAC Inc. and DWAC Foundation personnel will be located in the proposed new location. The current proprietor of the Pottery Studio will be retained to continue to instruct pottery classes. All instructors of the art classes will be hired on contract and paid a fixed fee for each class. A new part-time position is required to manage all administrative duties including programming, class registration and scheduling of staff and volunteers. DWAC will promote the classes within its existing marketing channels including brochures, website, media and City of Pickering materials. 9 ATTACHMEN i tr J_ 10 CkcPORT # Q ES I ~ 66 (J~~e ~C3 of 7. Financial Plan 7.1 Historical Pottery Studio Financials The financials for the last 10 years have been reviewed by DWAC. The 2007 financials are indicative of the last 10 years and are used for the basis for projected financials. The following summary provides the 2007 and latest year (2009) historical financials: Actual $'000 2007 2009 Revenue 40 42 Expenses: Third Part Instructor Fees 15 14 Proprietor Instructor Fees 0 0 Proprietor Admin Sala 0 0 Supplies 12 11 Rent 8 9 Office 3 3 Other 2 3 Net Margin 0 2 It has been determined that the proprietor has not been charging the business for her administrative or class instruction time. Essentially her class instruction revenue has just covered the fixed costs of the business including rent payments to the City of Pickering. This has not been a financially viable business for the current proprietor. 7.2 Key Assumptions for Projected Financials In order to make this a viable business, all instructors including the proprietor must be paid appropriate fees and a part-time centre manager position must be established to manage all administrative duties. The current proprietor would like DWAC to relocate by the end of March and to take over the business by April 1, 2011. The additional expenses to cover the new part-time employee and the current proprietor's instruction time is assumed to be covered by the following means: • Art grants starting in Q4 2011 • Additional class revenue starting in Q4 2011 • Rent relief from the City for two years 10 L~ ATTACHMENT # 1.0 REPORT #:_OC-S I I - l I In addition, there is not sufficient means to cover the current proprietor's full instructor fees in Q2 and Q3 of 2011 as the additional revenue does not accrue until Q4. It is assumed that the fees will be temporarily reduced by 50% until sufficient grant funding is obtained. Revenue Projection Assumptions • Existing pottery classes will continue as per 2007 basis • 5 new classes in Q4 2011 with average of 6 participants per class • 30 classes in 2012 with average of 8 participants per class • 39 classes in 2013 with average of, 10 participants per class • Market charge rate of $200 per participant • Arts funding starts in Q4 2011 at $20K/y • Arts funding requirement is reduced significantly to $6K/yr by 2013 The number of classes and participants per class is conservatively estimated based on extensive class instruction experience of the Executive Director of DWAC. The arts funding is based on the probability of success in applying to the following grant agencies: • Trillium Art Grant • Ontario Arts Grant • Access Copyright Grant Total Potential - $45K Expense Projection Assumptions • Market rate for instructors (including current proprietor except for Q2 and Q3 2011) at $725 for regular classes and $1080 for longer student classes • Typical supply costs for each type of class • Part-time manager progressively increases time in 2011 to 50% employment in 2012 - $20K/yr • Rent relief by the City in first 2 years o Full Relief in Q2 thru Q4 2011 - Rent at $0 o 50% Relief in 2012 - Rent at $400/month - $4.8K for year Based on these conservative assumptions, DWAC will quickly grow into operating'a sustainable business and will be well positioned to pay full rent ($8001month) to the City in 2013. 11 II ATTACHMENT # -__...T0 REPORT# OeS 6 D- 7.3 Projected Financials The following are projected financials for the next three years: Projected ($'000) 2011 2012 2013 Revenue Existing Classes $40 $40 $40 New Classes $6 $49 $75 Art Grants $5 $20 $6 Total Revenue $51 $109 $121 Expenses Existing Instructors $15 $15 $15 Previous Proprietor $9 $25 $25 New Instructors $4 $25 $31 Total Instructors $28 $65 $71 Admin. Manager $6 $20 $20 Supplies $12 $14 $15 Rent $0 $5 $10 Office $3 $3 $3 Other $2 $2 $2 Total Expenses $51 $109 $121 Net Margin $0 $(0) $(0) The need for supplemental art grant funding is significantly reduced by 2013 on the way to a sustainable operating organization. 12