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HomeMy WebLinkAboutREDkilec4Page 1 of 2 r Council, SloCity From :Karen Kile [kkile@sloartcenter .org ] To :Council, SloCity Cc : Subject :Red file for Agenda Item at Tonight 's Council meetin g Attachments : Dear Mayor and Councilmen , The San Luis Obispo Art Center's request that the lease agreemen t between the City of San Luis Obispo and the San Luis Obispo Ar t Center be renegotiated was for two reasons . One, we found that e-a nD cbPymajor donors are more willing to help build a new 26,000 square_ouNCi Lfoot facility on our location if the Art Center has a longer lease p.G nip C~CDD DI Ra-FIwith the City . And two, the Art Center is the only community C3'FI R DI RyE CHIE Fpartner to pay 5% commission in addition to the $1/year rent ..L1'ATTORNEY L3'PW DI RNeither the Children's Museum, Little Theatre, Hlstorical Museur LERK/ORIG Z POLICE CH FbEPT HEAD Sor Railroad Museum have such a requirement in their agreement L~'R-p C LJ1 I L EC DI R DI R We do not know why the first lease signed in 1967 included the lf~CI R 5% stipulation . While the 5% amounts paid to the City over the '~"S'-t- past 43 years have been relatively small, in the range of $3,000 to Cary $6,000 they have been significant to this non-profit organization ~~ that provides so much programming to our city residents an d visitors on such a tight budget . The Art Center's primary mission is to promote the visual arts wit h exhibitions and educational components . It is not a commercia l gallery . Over 40,000 people a year walk through free of charge t o view the exhibitions as part of their enjoyment of the cultural life of San Luis Obispo . Surveys show that most people are on thei r way to shop or dine downtown, many are returning tourists tha t make a requisite stop at the Art Center as part of their San Lui s Obispo experience, and a significant number just happen to wal k in because of our prominent location on the Mission Plaza . Fundraising efforts such as the Plein Air Festival are importan t cultural events on the City's calendar, as well as raising vital fund s for the Art Center's operational budget . The Art Center consciousl y chose an art related event as its major fundraiser to be in line wit h its mission and purpose—to further the understanding of th e visual arts, exhibiting the finest art, increasing the audience fo r the arts, and creating new awareness and support for the Ar t Center's year round exhibition and education programming . An y effort to add a 5% commission to the art sales from this weeken d fundraising event would be a hardship . It would also be unfair, especially since the City does not add a 5% commission to th e fundraising events of other community partners . If the Art Cente r held 5k runs, golf tournaments or other such events, we don't believe this idea would have surfaced . Sent :Tue 2/16/2010 1 :21 PM RED FIL E -MEETING AGEND A DAT /.t io ITEM #C y https ://mail . slocity .org/Exchange/slocitycouncil/Inbox/Red%20file%20for%20Agenda%2 ... 2/16/2010 Page 2 of 2 We understand that there has been a suggestion of charging th e 5% commission to the City only on sales revenue over a certai n amount, in anticipation of a bigger building's increased earnin g power . Such a payment would be just as harmful proportionally t o the operations of the new Art Center as the current 5% charge i s to us now, since a bigger building will also have its increase d costs . On behalf of the Board of Directors, staff and many volunteer s that keep the Art Center a vital part of our City, please suppor t tonight the lease agreement as originally submitted . Sincerely , Karen Kil e Executive Directo r https ://mail . slocity .org/Exchange/slocitycouncil/Inbox/Red%20file%20for%20Agenda%2 ... 2/16/2010