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FUNDING OPTIONS FOR THE LYRIC THEATRE

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TO: Honorable Chairperson and Members DATE: June 8, 1999
Board of County Commissioners

SUBJECT: Funding Options for the
FROM: M.R. Stierheim Lyric Theatre
County Manager

STAFF RECOMMENDATION
As we committed at the March 1, 1999 County Commission meeting, this report is being provided as an update on progress being made to assist the Black Archives, History and Research Foundation of South Florida with capital improvements to the Lyric Theatre in Overtown. This memorandum details: 1) the project's background; 2) the current work to complete renovations on this historic building; and 3) progress on efforts to identify additional revenues, pursuant to Resolution R-939-98, for constructing an ancillary facility adjacent to the Lyric Theatre.

MANAGER'S BACKGROUND
1) Summary of Project Background
Located in Overtown at 819 NE 2nd Avenue, the Lyric Theatre opened in 1915 and is the oldest theater remaining in Miami-Dade County. After a long, prominent period of serving as a hub for Overtown's cultural life, the theater fell into disrepair and was closed. One of six buildings in Overtown listed on the US Secretary of the Interior's National Register of Historic Places, it is currently owned by the Black Archives, History and Research Foundation of South Florida. The Black Archives planned for the renovation and reopening of this theater to serve as a catalyst for the redevelopment of the Historic Overtown Folklife Village. Facilitated by internationally-renowned architect and urban planner Elizabeth Plater-Zyberk, an area-wide revitalization plan, identifying the Lyric Theatre as an "anchor" project for the Village, was completed in 1998.

In 1993, during the initial design phase of the renovation of this 400 seat auditorium, the Miami-Dade Cultural Affairs Council, in consultation with the Black Archives, asked the team of theater and acoustical consultants working on the new downtown performing arts center to review the drawings for the Lyric's renovations. This consultant team provided advice which helped to shape the renovations of the facility. In addition, they concluded that this historic building is not large enough to incorporate improvements necessary to meet current day's standards for theater and technical equipment; adequate backstage spaces (dressing rooms, wing space, staff work spaces, etc.); audience amenities (functional box office/ticketing facilities, lobby and community spaces, restrooms, etc.; and ADA requirements.

Consequently, a strategy was developed with the Black Archives to acquire the property adjacent to the Lyric Theatre (on the north and/or south sides of the historic building) and to construct, on this property, an ancillary facility connected to the 1915 structure. This ancillary facility would be integrated architecturally and functionally into the existing building. It would respect the architectural heritage of the historic Lyric Theatre and improve the theater so that it can operate as a state-of-the-art theater space, meeting contemporary standards for audiences, artists and staff. The property to the north of the Lyric Theatre has been given to the Black Archives by the City of Miami and will serve as the site for this ancillary facility.

2) Current Work to Complete Renovations

Since FY 1992-93, Miami-Dade County has provided a total of $1,268,676 in funding support for capital improvements to the existing Lyric Theatre, principally through capital grants from the Miami-Dade Cultural Affairs Council and the Miami-Dade Office of Community and Economic Development. In 1993, upon the recommendation of the Performing Arts Center Trust, the County Commission approved an Existing Facilities Plan to provide funding support for capital improvements to a network of eleven existing, neighborhood facilities that would work in concert with the new downtown performing arts center. The Plan included an additional $630,000 for renovations to the Lyric Theatre. The County issued bonds for the capital costs of the performing arts center project, including the Existing Facilities Plan, in December 1997.

In the spring of 1998, a state appropriation needed to finish the renovations to the historic structure unexpectedly was not approved. Consequently, the ongoing work to complete the theater was in danger of being suspended. With the support of the Miami-Dade Cultural Affairs Council and the Performing Arts Center Trust, Commissioner Barbara Carey-Shuler sponsored a resolution which was approved "advancing" $275,000 of the $630,000 Existing Facilities Plan funds for the Lyric to ensure the completion of the theater's renovations (Resolution R-938-98, July 21, 1998 County Commission meeting).

The Miami-Dade Cultural Affairs Council is working closely with the Black Archives to implement this $275,000 grant and renovations are now being completed on the existing, historic building. The Lyric Theater is expected to be open for a limited activities schedule, beginning this summer.

3) Progress Report on Identifying Additional Revenues

On July 21, 1998, the County Commission approved Resolution R-939-98, directing the County Manager to work with the Performing Arts Center Trust, Inc. to identify an appropriate source or sources of funding to provide five million dollars for this project. Since that time, County staff from my office, the Office of Management and Budget, GSA and the Miami-Dade Cultural Affairs Council have worked together with representatives from the Black Archives, including Dorothy Fields, Derek Davis, Martin Fine, and the project's architects, Clyde Judson and Richard Heisenbottle. Our staff has received preliminary budgets for the use of these requested funds; site visits to the theater have been conducted; and initial schematic drawings for the ancillary facility have been reviewed.

Consensus has been reached with the Black Archives on the following key premises regarding the process of identifying additional funds for the ancillary facility:

* Work on this project will necessarily span up to a 30 month period and thus, funding support can be apportioned over two to three fiscal years.

* The first priority for funding support is the cost of completing architectural drawings for the ancillary facility so that a more complete and comprehensive cost estimate can be accomplished and revenue needs can be refined. Funds for this work can be made available by a budget revision of $355,000 from the existing facilities allocation described below.

* County staff and representatives of the Black Archives will work as a team to pursue one or more of the revenue options outlined below.

The following revenue sources have been discussed with the Black Archives and are considered to be viable options for addressing this funding need:

* The Balance of the Black Archives' Allocation from the Existing Facilities Plan: $355,000 remains of the $630,000 in the Plan for the Lyric Theatre. Discussion with representatives of the Black Archives has focused on applying these funds to the architectural and costing work that must be done next for the ancillary facility. It is expected that these funds are sufficient to complete the design and cost estimating work. The process established for use of the Existing Facilities Plan funds involves a review and recommendation by the Performing Arts Center Trust and approval by the County Commission and the Mayor. The Miami-Dade Cultural Affairs Council will work with the Black Archives to develop an expenditure budget for the proposed use of these funds.

* County and City of Miami CDBG Funds: The Black Archives has been notified that the RFP for FY 1999-2000 funding from the Office of Economic and Community Development will be available on June 15, 1999, with workshops the week of June 20th. The Miami-Dade Cultural Affairs Council will ensure that a copy of the RFP is forwarded to the Black Archives. The Black Archives has determined that the City of Miami's process for CDBG funding follows a timetable parallel to the County's, and they will follow-up directly with the City.

* Reprogrammed County CDBG Funds: The Budget Office is working with the Office of Community and Economic Development to determine the availability of reprogrammed and/or reserve County CDBG funds.

* The Proposed 1 percent "Transit Not Tolls" Sales Tax: Mayor Penelas' proposal for this sales tax initiative includes a component for bond proceeds and "pay-as-you-go" funding for needed public infrastructure projects, including cultural facilities funding support.

* Empowerment Zone Funding: The Lyric Theatre is located within the geographic boundaries of the Empowerment Zone and was included in the EZ Plan as a cultural catalyst for community redevelopment. The Budget Office is looking into the possibility of earmarking a portion of the County's annual matching commitment of $10 million for the Lyric Theatre.

* State of Florida Division of Cultural Affairs: Florida allocates $10 to $12 million annually for cultural facilities improvements projects around the State. Non-profit organizations are eligible to apply for up to $500,000 annually. The Black Archives has not yet applied for any funds from this source for the Lyric Theatre. The Black Archives has been notified of and intends to participate in a June 14, 1999 grants writing workshop for this program being conducted by the Florida Division of Cultural Affairs in Fort Lauderdale. The Miami-Dade Cultural Affairs Council has offered technical assistance to the Black Archives in preparing this grant application.

* State of Florida Division of Historic Resources: The Historic Preservation Grant Program awards grants generally ranging between $50,000 - $250,000 to eligible, historic properties for capital improvements. There have been situations, however, where applications have been determined appropriate for larger grant awards. The last time that the Black Archives applied to this source for the Lyric Theatre was in FY 1990-91 (awarded $216,406). Contact information and technical assistance for pursuing these grant funds are being provided to the Black Archives from the Miami-Dade Cultural Affairs Council.

* Private Foundations: The Miami-Dade Cultural Affairs Council is providing a contact list of private foundations (e.g. The Kresge Foundation and the Knight Foundation) which provide substantial grants for capital improvements. The Council also will offer technical assistance in helping the Black Archives to prepare these requests.

* State Legislative Appropriations: Given strong support for the Lyric Theatre from the Miami-Dade Legislative Delegation, the Black Archives will investigate the viability of working with the Delegation to secure a state legislative appropriation. As they have in the past, the Miami-Dade Cultural Affairs Council will provide assistance to the Black Archives as needed, in tandem with the timetable and process for the 2000 legislative session, including help with the required paperwork and materials submissions.

Other options which were examined with the Black Archives included: funds from the project reserve of the downtown performing arts center; and funds from requiring scope reductions in the performing arts center project. A representative from the Black Archives expressed concerns regarding the detrimental effect that these options would have on the quality of this major cultural and civic project.

In addition to this work on capital funding needs for the Lyric Theatre, initial discussion have occurred between County staff and the Black Archives about management plans and operational revenues for this facility. The Black Archives anticipates that once the historic building is reopened and progress begins on the ancillary facility, it can pursue additional private sector contributions to establish an endowment to help offset operating expenses. Adequate and realistic planning for the governance, management, finances, programming and marketing of this facility will be a critical factor in maximizing the success of the capital dollars invested.

Once more information is available from the completed architectural drawings and cost estimates, we will bring back to the Board a suggested multi-year funding plan to complete the ancillary facility.

c: Dr. Dorothy Jenkins Fields, Black Archives, History and Research Foundation of South Florida
Martin Fine, Black Archives, History and Research Foundation of South Florida
Parker D. Thomson, Performing Arts Center Trust, Inc.
Rick Sisser, Miami-Dade County Cultural Affairs Council