8.4 Fox Theatre Grant Intent CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION .DATE TIME
6/19/00 4:00 P.M.
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR
NO. 8 AGENDA:
CITY MANAGER
ITEM ~
NO. 4 BY: Dennis M. Kissinger BY:
Item
Resolution No. 00-5610
A RESOLUTION OF INTENT TO PROVIDE A CAPITAL GRANT FOR RESTORATION AND RE-USE
OF THE HISTORIC FOX THEATRE IN DOWNTOWN SALINA.
Background
In 1989, the City of Salina accepted ownership of the Fox Theatre, after its closure by the private owners
as a movie theatre. The City assumed its care and maintenance until a community restoration and re-
use plan could be developed. In 1997, the City granted ownership of the theatre to the Historic Fox
Theatre Foundation of Saiina. This not-for-profit corporation has developed a restoration and re-use
plan, and has progressed in their efforts to raise the estimated $2.85 million needed to accomplish the
plan. In March 2000, by Resolution No. 00-5578 (copy enclosed), the City Commission expressed its
endorsement and support of the restoration and re-use plans. The Fox Theatre Foundation Board has
recently submitted a request to the City for $750,000 in capital grants to assist in making the project a
reality. The City Commission now has under consideration this Resolution of Intent as the method of
determining the decision on this grant request.
GRANT REQUEST DETAILS:
Q Amount Requested- $750,000
c] Conditions
(a) Fox Foundation must raise $2,100,000 from other sources before any City grant funding is
implemented.
(b) Upon opening of the theatre, Fox Foundation will grant to the City four dates per year without
charge for arts, cultural or charitable fundraising events.
c~ Timinq of City Grant Funds
At the point the Foundation certifies it has raised $2,100,000 from other sources, the City will provide
$375,000 during that fiscal year, and an additional $375,000 at the City's next fiscal year.
STAFF ANALYSIS:
n Legal
(a) The completion of the Fox Theatre project as proposed does serve a public purpose e.g.
economic development, downtown revitalization and historic preservation. Therefore, a grant of
public funds is legal.
o Financial
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
6/19/00 4:00 P.M.
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR
NO. AGENDA:
CITY MANAGER
:-
ITEM
NO. BY: Dennis M. Kissinger BY:
Page 2
(a) The grant request is for $750,000 to be matched by the Fox Foundation with $2,100,000 from
other sources. This provides a cost-sharing ratio of 74% Foundation/26% City. This is a favorable
ratio in comparison with many projects.
(b) Separating grant payments in two phases (over two year) lessens the impact on city finances.
(c) Staff review indicates that, while this is a very significant sum, City Commission award of the
grant if conditions are met would not have a significant negative impact on City government fiscal
health or on essential city services. Because this is a non-recurring capital expenditure, it could be
incorporated into the City's capital spending plan.
o City Policy and Past Practice
(a) Under the City of Salina Financial Policies, $750,000 is the level of non-infrastructure project
(city cost) above which it becomes a public referendum project. At the level requested, under city
policy, the Commission would normally make the decision to approve or disapprove.
(b) Under the City's financial policies, priority consideration is given for capital projects which are
funded in whole or in part with leveraged or partnership funding. The 74%/26% cost-sharing in this
case qualifies as significant leveraging.
(c) The City of Salina has a long history of partnership projects in downtown, arts, leisure and
recreation areas. Examples include downtown renovation and streetscape, the Community Theatre,
Art Center, Oakdale Stage, Dean Evans Stadium and others. Consideration of this type of grant is
not inconsistent with the City's past practice.
o Conflict with Existinq Facilities
Staff does not believe the completion of the Fox Theatre as planned is a conflict with the City's
Bicentennial Center or other venues in the community. If restored and operated as planned, it can
be a complementary facility to the Bi-Center and add value to events and offerings available to the
community.
STAFF COMMENTS:
At this time, there do not appear to be any irresolvable legal, administrative or fiscal "roadblocks"
involved in consideration of this particular grant request. This leaves it solely as a matter of public policy
decision-making by the City Commission. Staff would suggest the following as some questions/criteria
to be used in your deliberations as Governing Body members.
Q With the availability of City grant funding in the amount requested, will the likelihood of success in
the Fox Foundation's project fundraising efforts be significantly increased?
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
6/19/00 4:00 P.M.
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR
NO. AGENDA:
CITY MANAGER
ITEM
NO. BY: Dennis M. Kissinger BY:
Page 3
Q Conversely, without the requested grant funds, will the likelihood of success be significantly
diminished? What would be the consequences of this project not coming to fruition?
r~ The City has already officially established its "support" for the Fox Theatre project. Does this
particular not-for-profit agency project merit the City's significant financial support, in addition its
"moral" support?
r~ Considering all the varying needs, desires and demands of the community, and recognizing that a
community and city government can never satisfy them all, where does this project rank in priority?
c] Do the public benefits derived from a completed Fox Theatre project justify the added city (public)
investment?
; Is the timing of this project, its fund-raising effort and city grant request appropriate and in the
community's best interest? Is the timing "right?"
ACTION:
Consider Resolution No. 00-5610 expressing the intent of the City to provide a $750,000 capital grant for
restoration and re-use of the Fox Theatre and establishing conditions for the grant.
Enclosures
Discover downtown Salina
a proud history .... a promising future
Inc.
Downtown revitalization in association with the Kansas Main Street Program
June 16, 2000
Salina City Commissioners
300 W. Ash
Salina, Ks. 67401
Dear Commissioners:
At their regularly scheduled monthly board meeting, the Salina Downtown, Inc. Board of Di-
rectors approved submitting a resolution to you. They are extremely pleased that the city is
taking an active role' in the revitalization efforts of the Historic Fox Theater.
I believe the resolution adequately reflects 'their sentiments on behalf of all downtowners.
There is no doubt that the downtown will be one 0fthe major beneficiaries of the Fox's op-
eration. I am hopeful that future boards and staff will realize its importance with active mar-
keting efforts to further enhance its social, cultural and economic value to the city of Salina.
We congratulate and thank each of you for your positive efforts' on behalf of this historic "old
friend" ........ soon to be totally revitalized.
Sincerely, ,,~! ~ /.
Nic~ Slechta
Executive Director
cc: Louise Appleby, President
114-A South Seventh Post Office Box 1065 Salina, Kansas 67402-1065 (785) 825-0535 FAX (785) 825-7216 salinadowntown.com
Louise Appleby - President, Jim Ravenkamp - Vice President, Wayne DeBey - Secretary, Steve Michel - Treasurer
Carl Adrian, Andy Anderson, Tom Bell, Liz Carroll, Harold Cooley, La Velle Frick, Jerry Hinrikus,
Bernard Jilka, Jim Loader, Kristin Seaton - Ex Officio, Nick Slechta - Executive Director
~ Discover downtown Salina
~~~'~'~~~. ..II1C . a proud history apromisingfuture
Downtown revitalization in association with the Kansas Main Street Program
WHEREAS, the Historic Fox Theatre of Salina Foundation, Inc. has worked dili-
gently on the restoration of this designated landmark in the downtown business district; and
WHEREAS, the Fox-Watson Theatre, built in 1931, has provided Salinans and area
visitors with many hours of entertainment for 55 years; and
WHEREAS, its planned use as an all-purpose performing arts facility offers many
opportunities for enhancing community quality of life; and
WHEREAS, there will be a positive economic impact on downtown revitalization as
well as other areas of the city; and
WHEREAS, the Fox has been honored by the White House'& National Trust assur-
ing the Foundation's Board of Directors of additional resources...
NOW, THEREFORE, BE IT RESOLVED by the Salina Downtown, Inc. Board of
Directors:
One - We do hereby support the Historic Fox Theater of Salina Foundation, Inc.
Board of Directors in their mission of restoration of the Fox and their plans that will be im-
plemented for the benefit of all our citizens and;
Two - We acknowledge, with deep appreciation, the City of Salina's positive actions
which include, but are not limited to: financial support and the encouragement of all citizens,
businesses and organizations to invest in this worthwhile endeavor.
Adopted by the Salina Downtown, Inc. Board of Directors on this 13th day of June,
2000.
President
114-A South Seventh Post Office Box 1065 Salina, Kansas 67402-1065 (785) 825-0535
FAX (785) 825-7216 salinadowntown.com
Louise Appleby ~ President, Jim Ravenkamp - Vice President, Wayne DeBey - Secretary, Steve Michel - Treasurer
Carl Adrian, Andy Anderson, Tom Bell, Liz Carroll, Harold Cooley, La Velle Frick, Jerry Hinrikus,
Bernard Jilka, Jim Loader, Kristin Seaton - Ex Officio, Nick Slechta - Executive Director