|
Facing a $2.7 M yearly deficit,
trust seeks to increase PAC revenue.
BY FRED TASKER
After the gala opening of the
Performing Arts Center, even if it's delayed
until February 2006, comes another gargantuan
task: paying to run it.
Paying for the electricity for the special
elevator that can make the elephant disappear
in the opera Aida (and cleaning up afterward).
Running a new ticketing system that can offer
single-price packages for performances by the
four resident companies, Florida Grand Opera,
Miami City Ballet, Concert Association of Florida
and New World Symphony. Bringing in that Spanish-language
Broadway series from Buenos Aires.
|
 |
So far, the people who will run the center haven't
figured out how to do it.
At this point $15.2 million a year in expenses has
been identified but only $12.5 million in revenue,
leaving a $2.7 million yearly deficit.
''As it stands now, we figure we can break even by
the fourth year,'' says Michael Hardy, president of
the Performing Arts Center Trust, which will operate
the center when it's finished. Not good enough, he
admits.
And closing the gap will be an uphill climb in a
community that presents special challenges to fundraising
for the arts.
First, Miami's PAC will be the third center opening
to serve the 4.8 million residents of South Florida.
There's also the $57 million Broward Center for the
Performing Arts in Fort Lauderdale and the $55 million
Kravis Center for the Performing Arts in Palm Beach.
In Philadelphia, by contrast, the new Kimmel Center
for the Performing Arts is the only center for 5.1
million surrounding residents.
Second, with the collapse of the Florida Philharmonic
Orchestra, the PAC is left with only four resident
companies. They're scheduled to fill only 125 nights
a year of the combined total of 730 nights available
in the PAC's two biggest performance halls.
That's less than 20 percent. And, since resident
companies pay lower rent than commercial acts, they
will provide an even smaller percentage of PAC revenues.
It's not unusual. Even at the Kimmel Center, where
eight resident companies fill 75 percent of the nights,
they provide only about 30 percent of the revenue.
So far, the Miami PAC expects yearly operating revenues
of:
• $1.4 million from Miami-Dade County's Convention
Development Tax or ``bed tax.''
• $640,000 a year in interest income from a
$21-million endowment being raised by the PAC Foundation.
• Up to $250,000 from the Miami-Dade County
Cultural Affairs Department.
• $3 million or less from the four resident
companies.
• An unknown but crucial amount from performances
by commercial acts from Wayne Newton to Cirque du
Soleil to the Orquestra de Sao Paulo.
Hardy says the bed tax money is already committed,
so it won't be affected by the drive to build a new
baseball stadium for the Florida Marlins.
ENDOWMENT ON TIME
The PAC Foundation is on track to deliver its $21
million operating endowment on time, in addition to
the $42.2 million it has promised for construction
of the center, says executive director Nancy Herstand.
It has raised the money with programs as big as selling
the naming rights to the ballet/opera house to Sanford
and Dolores Ziff for $10 million and to the symphony
hall to Carnival Cruise Lines for $10 million, and
as small as selling individual bricks for the PAC
plaza to kids and families for $100 each. Naming rights
for the entire PAC are being offered for $20 million.
Preferred seating is being sold for $50,000 per seat
in the orchestra, with boxes seating six to eight
patrons on sale for $150,000 to $1 million -- plus
the price of tickets to individual events.
Aware of the PAC's operating deficit, Herstand said
her group will redouble its efforts to raise even
more money after it has provided the $21 million endowment.
''We want to be sure they get off the ground properly,''
she says.
Another crucial point to raising operating money
is the number of performances by groups other than
the resident companies.
Across the nation, Hardy says, the average ballet/opera
house has performances on 60 percent of available
nights, and symphony halls are busy on 40 percent
of the nights.
Since Miami's four resident companies will fill the
two halls less than 20 percent of the time, it's crucial
to augment that with performances by commercial acts
that pay a full rate.
COMMON PRACTICE
All performing arts centers do this in varying degrees.
At the Broward Center for the Performing Arts, such
upcoming acts include singer Wayne Newton, jazz artist
Peter Nero and an off-Broadway spoof of nuns called
Late Nite Catechism.
At the Kimmel Center more than half of the operating
revenue comes from such non-resident acts as violinist
Pinchas Zukerman, jazz/pop/funk singer Cassandra Wilson
and Sharon, Bram & Friends, a children's show
with life-size puppets and an audience sing-along.
Bringing in such acts to the Miami PAC is the daunting
job of just-hired programming manager Justin Macdonnell,
a former Australian arts promoter with extensive experience
in Latin America.
''I have the most exciting job in Miami,'' he says.
``To balance the work of the resident companies with
a whole lot of other things drawn from every art form
and as many parts of the world as possible.''
UNIQUE MIX
Given Miami's audience and a new telephone survey
of local audience tastes, Macdonnell envisions a different,
uniquely Miami mix here, including jazz, Latin pop
and rap and even hip-hop in the finely-tuned symphony
hall.
''I don't see why not,'' he says. ``They play in
larger venues than that.''
Macdonnell also envisions such acts as Cirque du
Soleil and major Latin stars such as Argentine diva
Mercedes Sosa or cabaret artist Astrid Haddad, and
classical acts from Europe, Latin America, Asia, and
around the world.
GAME PLAN
Beyond that, Hardy hopes to narrow the $2.7-million
gap with:
• An extended Broadway Series, with at least
five weeks of Broadway shows during the winter season
and additional shows during the summer.
• More opera performances. The new opera hall
will have two separate side stages that can be moved
onto the main stage, making it possible to stage two
operas at once on alternating nights.
• Shows with local and national performers
produced and presented by the PAC itself.
''We need to get a share of the profits,'' Hardy
says. ``We don't have that now.''
• Spinoff income from selling pay-per-view
TV rights for broadcasts of shows by touring companies.
• More shows aimed at kids, which the survey
said will appeal to Hispanic audiences -- by groups
such as the New Victory Theater of New York, which
specializes in stage adaptations of children's classics.
• Increased efforts to rent out the PAC to
corporations at premium prices for gala balls, stockholder
meetings, and private performances.
Says Hardy: ``At Lincoln Center only 15 percent of
the use of the hall is corporate rentals, but it produces
55 percent of the rental revenue.''
Adds Macdonnell: ``We'll even rent the lobby space
for office parties, weddings and bar mitzvahs.''
With just over two years before the gala opening,
Miami's PAC managers have a long way to go in covering
the deficit.
They vow to do it. Hardy says breaking even the fourth
year isn't good enough: ``We're going to keep working
until we can do it in the first year.''
Fuente:
The Miami Herald
Noviembre - 2003
|