...Explanation
Background:
This legislation authorizes the Director of the Department of Finance and Management to modify Development Agreements with the Columbus Association for the Performing Arts (CAPA) by removing Section 6, “Reserve Fund”, of the agreements. Section 6 requires CAPA to create a maintenance and capital improvement reserve fund and requires the creation of a Reserve Fund Review Board.
In August, 1982 the city entered into two Urban Development Action Grant loan agreements with HUD; one for $1,500,000 (Ordinance #1231-82) and one for $500,000 (Ordinance #1530-82), for CAPA to make improvements to the Ohio Theatre through the construction of an adjoining Arts Pavilion and Esplanade (the “Project”). The Project has been completed and CAPA has fully repaid these two 30-year term loans, a total of $2,000,000. A provision currently exists in both of the Development Agreements that CAPA shall establish an Ohio Theatre Maintenance and Capital Improvement Reserve Fund (Fund), to be used for the long-term maintenance and capital improvement of the Ohio Theatre facility. CAPA is obligated to maintain this fund for fifty (50) years after the completion of the UDAG loan term (until the year 2063). The agreements also state that CAPA and the city shall establish an Ohio Theatre Maintenance and Capital Improvement Reserve Fund Review Board (Board) to oversee the expenditures from the Fund.
CAPA has been the steward of the Ohio Theatre since 1969, and now also owns and operates the Palace and Southern Theatres. CAPA has a long history and considerable experience in maintaining these historic performing arts theatres.
CAPA committed over $980,000 of facility fee revenue earned in fiscal year 2013 towards maintenance and upkeep of its theatres. In the last 10 years, total facility fee funds expended on the theatres has been in excess of $8,700,000. In addition to ongoing facility fee funding, CAPA raised approximately $6.4M in 2002 for an extensive renovation...
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