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HomeMy WebLinkAbout11/4/2025 Item 6a, Karim Ermina Karim < To:E-mail Council Website Cc:Leann Subject:SLOMA Expansion - Partnership Request Attachments:SLOMA Expansion_City Packet 2025.10.30 (1).pdf Dear Mayor Stewart and Councilmembers, On behalf of the San Luis Obispo Museum of Art Board of Directors, I’m pleased to submit the Museum’s formal request for City partnership in our downtown expansion project. This project has been years in the dreaming by community members who have long envisioned a museum that matches the creativity and vitality of San Luis Obispo. Earlier this year, a rare opportunity emerged that could make that vision possible—creating the potential to unite adjacent downtown buildings and expand the Museum’s role as a cultural, educational, and economic anchor for the community. We recognize how quickly this opportunity has progressed, and we’re deeply grateful for the City’s thoughtful consideration and long-standing commitment to arts and culture as part of a thriving downtown. We look forward to sharing more about the project’s vision and potential impact during the November 4 Council meeting. Warm regards, Ermina Karim Co-Chair of the Board of Directors SLO Museum of Art Leann Standish Executive Director SLO Museum of Art 1 PROPOSAL FOR SUPPORTING THE FUTURE SAN LUIS OBISPO MUSEUM OF ART: A NEW HOME IN THE HEART OF DOWNTOWN 1 1010 BROAD STREET at Mission Plaza POST OFFICE BOX 813 SAN LUIS OBISPO, CA 93406 PH: 805-543-8562 INFO@SLOMA.ORG Ermina Karim Co-Chair Cheryl Cuming Co-Chair Trudie Safreno Treasurer Barbara Bell Executive Committee Lindsey Harn Executive Committee John Dunn Board Member Celeste Hope Board Member Beya Makekau Board Member Mike Quamma Board Member Missy Reitner-Cameron Board Member David Richards Board Member Amy Wright Board Member Leann Standish Executive Director Dear Mayor Stewart and Honorable Councilmembers Boswell, Francis, Marx, and Shoresman: For more than six decades, every City Council—including this one—has made bold investments to reinforce and enrich our community’s economic and cultural vitality. From the creation of Mission Plaza to the support of the PAC to the soon- to-open SLO REP Theatre, each generation of civic leaders has proven through their vision and action that City investment in our social infrastructure is essential to shaping a vibrant, resilient community. In each case, the presiding City Councils recognized that transformative projects seldom come without risk. They weighed long-term returns, ensured alignment with Major City Goals, and moved forward to strengthen the cultural and economic fabric of our community. The Next Chapter in Civic Investment Today, the San Luis Obispo Museum of Art (SLOMA) presents the next opportunity for civic investment and community transformation. Expanding from its historic home at 1010 Broad Street, the Museum will bring together three Higuera Street storefronts (778, 782, and 786) to form a 24,000-square-foot campus—bridging Mission Plaza and the vibrant downtown core with art and community. The total project is estimated at $20 million, to be raised in two phases. October 29, 2025 2 We respectfully request that the City invest $2.5 million to help bring this once-in-a-generation project to completion. A portion—$500,000—would help complete the first of two phases, outfitting the new Museum with the furnishings needed to welcome students, families, and visitors from across and outside the region. The remaining $2 million commitment would assist in the property’s eventual purchase, ensuring this downtown treasure remains a permanent part of San Luis Obispo’s cultural landscape. Importantly, the City’s support now would immediately qualify for a time-limited $2 million matching contribution from the Forbes family, thereby doubling the impact of the City’s investment and signaling to major donors that San Luis Obispo is ready to match their confidence with civic commitment. In doing so, the City would be joining a collection of private donors who, in total, have already pledged $8 million. An Aligned Investment SLOMA’s planned expansion embodies San Luis Obispo’s vision for a sustainable, inclusive, and economically vibrant community. It will directly advance the City Council’s Major Goals (FY 2025–27) for Cultural Vitality, Economic Resilience, and Fiscal Sustainability as well as Diversity, Equity, and Inclusion. Moreover, it is in alignment with the City’s long-term vision as articulated in the Downtown Concept, Mission Plaza, and Economic Development Strategic Plans and reflects priorities identified by Resonance Consultancy in its Downtown Future Forum Report (2021). Together, these efforts reinforce decades of civic investment in a thriving, culturally rich, interconnected downtown core. The expanded SLOMA will strengthen San Luis Obispo by: •Providing a year-round, everyday reason for residents and visitors alike to visit downtown, thus increasing foot traffic and tourism and generating an expected $4–$6 million in new annual downtown spending. •Creating an accessible, public destination that will fuel the momentum of downtown revitalization and enrich the city’s enduring sense of place. •Exponentially increasing the educational programming and enrollment capacity for local students and families across the Central Coast to build creativity, confidence, and a deeper sense of belonging in our community. •Drawing visitors from across the Central Coast to the only art museum between Monterey and Santa Barbara, thus strengthening San Luis Obispo’s reputation as a regional cultural capital and place of creative belonging. A Timely Catalyst Our moment is now. City participation at this stage will help the Museum secure matching funds that will otherwise expire at year-end. Timely participation would also inspire additional private donations keeping the project on track for ground breaking in 2026, and a grand opening in early 2027. San Luis Obispo Museum of Art — Grant Request 3 Private donors are responding enthusiastically to the Museum’s vision: Since August 2025, SLOMA has quietly raised $8 million in cash and pledges from donors across the region, including nearly $600,000 in qualifying gifts toward the Forbes family’s $2-million challenge grant. When the full match is realized, total funds raised will exceed $11 million, more than half of the overall $20 million campaign goal. It’s worth repeating: In just 10 short weeks, our community has rallied around this vision with remarkable enthusiasm, making it clear through their generosity that this project reflects both the needs of today and the dreams of what San Luis Obispo can be for generations to come. Few moments offer such clear alignment between community will, private investment, and public purpose. By partnering in this effort, the City will extend a long legacy of transformational civic investments that strengthen downtown, fuel economic opportunity, and ensure that art and creativity remain central to San Luis Obispo’s identity for generations to come. We are grateful for your leadership and consideration. Respectfully submitted, Leann Standish Ermina Karim SLOMA Executive Director Co-Chair, SLOMA Board of Directors San Luis Obispo Museum of Art — Grant Request 4 WHY IT MATTERS: A DOWNTOWN ANCHOR FOR GENERATIONS TO COME SLOMA’s expansion is about more than adding walls for art: it’s about creating the kind of shared civic space that makes a city feel alive. Across the nation, libraries and museums are emerging as vital anchors of community life, providing the social infrastructure that helps people connect, learn, and imagine together. They invigorate downtowns, fuel local economies and give residents a sense of belonging that digital life cannot replace. The City’s own advisors, Resonance Consultancy, have emphasized that this kind of activation—where culture, community, and commerce intersect—is exactly what defines a thriving 21st-century downtown. Their Downtown Future Forum Report and Visit SLO CAL Destination Management Strategy both point to cultural vitality and authentic local experiences as essential to ensuring a vibrant community, one that attracts and inspires people to be engaged in the civic life of their community (see Appendix). Across the world, cities that are thriving did not happen by chance; they are the products of clear visions and bold investments in the facilities and experiences that cultivate creativity and connection. It’s worth recalling a few defining moments when City Councils made forward-looking investments that forever changed San Luis Obispo’s trajectory: •Mission Plaza (1970): Against considerable objections from the business community, the Council transformed a section of Monterey Street into one of California’s first pedestrian plazas. Fifty-five years later, Mission Plaza remains the heart of downtown and is celebrated as the jewel of San Luis Obispo—a model for small-city revitalization and placemaking. •Performing Arts Center at Cal Poly (1990s): In partnership with Cal Poly and the Foundation for the Performing Arts Center (FPAC), the City contributed over $5 million— about one-sixth of the total $30 million cost —to help build a world-class venue not far from downtown. In addition, for more than three decades, the City has shared in annual operating support alongside Cal Poly and FPAC, keeping the facility accessible and sustaining a robust calendar of performances that draw audiences from across the region. •Chinatown / Hotel SLO (2012): Once again, the Council forged ahead over objections from those lamenting the loss of parking, enabling the creation of the Chinatown project. The result—Hotel SLO—has become a cornerstone of downtown’s social and economic vitality, generating significant TOT revenue and strengthening downtown’s role as the city’s shared gathering place. San Luis Obispo Museum of Art — Grant Request 5 • SLO REP Theatre (2020s): Coming soon, thanks to the City’s continued financial support and a vision dating to the 1990s, SLO REP will break ground on a new performing arts venue expected to draw 50,000 patrons to downtown annually. Each of these decisions reshaped downtown in lasting ways. The expanded SLOMA represents the next bold step in that continuum—an investment that ensures our city’s core remains dynamic, economically vibrant and welcoming to all. What the Expansion Will Offer SLOMA’s expansion will connect the Museum’s historic home overlooking Mission Plaza at 1010 Broad Street to two adjacent buildings on Higuera Street, whose combined three storefronts will create a unified 24,000-square-foot art and community campus in the heart of downtown. This dual-front presence will physically link Mission Plaza and Higuera Street – creating a new gateway between civic, creative, and commercial life—weaving together two of San Luis Obispo’s most vibrant pedestrian corridors and activating them with art, education, and community life. The expansion will advance in two sequenced phases to ensure fiscal responsibility and steady progress: • Phase 1 ($10.4 million): Getting a museum built. This initial phase will transform three connected, underutilized Higuera Street spaces into one new museum with four galleries, community gathering areas, and a museum store. It encompasses design, permitting, construction, and all furnishings, fixtures, and equipment needed to open to the public as well as bridge funding to support operations during the transition period to the new facility. Completing Phase 1 will deliver a fully operational museum and a visible, high- impact anchor for downtown vitality. Our goal for opening to the public is January 2027. Importantly, SLOMA is contracting with local design and construction firms that rely on local labor. • Phase 2 ($10 million): Securing the Museum’s future. Once construction is complete, the second phase will purchase the property outright and establish an operating endowment, ensuring that the Museum’s presence downtown—and the City’s investment—are protected for generations to come. This structure provides long-term financial sustainability and allows the Museum to continue leveraging private philanthropy for ongoing growth and programming. The project will deliver not only more space for art and education but also new sources of earned income that will make SLOMA more financially self-sustaining for the long term. Once fully operational, the new Museum is projected—based on the Lord Cultural Resources feasibility study—to draw close to 110,000 annually to the heart of downtown and generate San Luis Obispo Museum of Art — Grant Request 6 millions in additional economic activity for nearby retailers, restaurants, and hotels (see Appendix). But more than that, the expanded Museum will be an everyday reason to come downtown. By presenting 10 to 15 exhibitions each year, alongside public programs, school tours, and community events, SLOMA will give residents and visitors multiple new reasons to return downtown again and again—building civic connection and sustaining local commerce year- round. Improvements include: Expanded Gallery Space: With nearly triple the current exhibition area, the expanded Museum will, for the first time, be able to host major traveling and co-curated exhibitions, while continuing to champion regional talent. Partnerships with peer institutions will allow SLOMA to share costs and visibility, bringing nationally-recognized art to San Luis Obispo, and making world-class exhibitions accessible to community members who might not otherwise have the opportunity to experience them. A Dedicated Education Space: Transforming the 1010 Broad Street building into classrooms will more than double SLOMA’s reach as an educational resource— restoring access to hands-on art learning that has largely disappeared from many local schools. The space will provide a permanent home for expanded programming, including field trips, art camps, teacher training, and community workshops, serving thousands of students annually while supporting lifelong learning for adults and families across the county (see Appendix). Cultural Gathering and Event Spaces: The expansion includes a versatile indoor gathering hall and outdoor patio, designed to accommodate artist talks, small performances, civic dialogues, and community celebrations. These flexible spaces will serve as a cultural commons for residents and visitors while generating new earned income through event rentals. San Luis Obispo Museum of Art — Grant Request 7 Historic Façade Restoration and Streetscape Improvements: The project will restore and unify the historic façades of two downtown buildings, thereby enhancing architectural character, lighting, and accessibility, and contributing to a more inviting pedestrian experience that will benefit the entire downtown core. Financial Sustainability: The expansion will generate new earned-income streams from event rentals, the museum store, and public programs thus making SLOMA more self-sustaining and resilient, less dependent on donor income, and better equipped to sustain operations for decades to come. A small museum shop on Higuera Street will feature artist-made goods and publications, extending the visitor experience while activating the street frontage. Sustainable Design and Accessibility: Adaptive reuse will minimize carbon impact, preserve the historic downtown scale, and ensure full ADA accessibility, energy efficiency, and flexible design for future needs. As a conservative estimate, these spaces will enable the Museum to double annual attendance to nearly 110,000, more than double educational participation, and greatly expand year-round programming establishing SLOMA as both a cultural anchor and a magnet attracting residents and visitors year-round to the downtown core (see Appendix). Alignment with Major City Goals As both a cultural investment and an economic catalyst, this expansion is in full alignment with this Council’s Major City Goals (FY 2025–27) for Cultural Vitality, Economic Resilience, and Fiscal Sustainability, as well as Diversity, Equity, and Inclusion: Promote Economic Resilience Research from Americans for the Arts shows arts patrons spend an additional $25–$70 per visit on local food, retail, and lodging. The expanded Museum is projected to generate conservatively $4–$6 million in new downtown spending each year, serving as both San Luis Obispo Museum of Art — Grant Request 8 a destination and a catalyst for surrounding businesses. The Economic Impact of the Arts & Culture Sector report for 2025 found that SLO County nonprofit arts and cultural organizations like SLOMA contributed to $291.1 million in visitor spending, yielding a total economic impact of $478.7 million, supporting 5,163 jobs countywide. The City of San Luis Obispo alone received $99 million in arts-related spending with a total impact of $163 million, underscoring that investment in culture directly strengthens our local and regional economy (see Appendix). Beyond its direct impact, SLOMA addresses a broader economic reality about the changing character of downtowns, shifting from their role as retail cores toward experience-driven destinations that combine culture, dining, and social gathering to attract residents, visitors, and workforce talent. A 2025 Cushman & Wakefield study (“The Rise of the Experiential Economy”) found that thriving downtowns depend on experience-focused anchors such as museums, theaters, and cultural centers. These anchors typically represent less than two percent of urban real estate but they generate roughly one-quarter of total foot traffic in thriving downtowns (see Appendix). Locally, the Visit SLO CAL Destination Management Strategy, developed with Resonance Consultancy in 2019, reached similar conclusions: emphasizing that future visitors increasingly seek authentic experiences that connect them with local creativity, culture, and community. The report highlighted the need for new, high-quality cultural offerings to complement San Luis Obispo’s natural assets and outdoor appeal, helping the region compete for both visitors and residents who value quality of life and belonging. Building on that foundation, the project also directly advances three of the City’s top opportunities identified in the Downtown Future Forum Report (Resonance Consultancy, 2021): establishing a Cultural Arts & Entertainment District anchored by SLOMA and its neighboring institutions; reconnecting public spaces along the creek and Mission Plaza into a cohesive cultural and pedestrian corridor; and strengthening a walkable, experience- driven downtown core that attracts residents and visitors year-round (see Appendix). Finally, just as the City’s financial support and partnership with REACH and the Cal Poly’s Center for Innovation & Entrepreneurship strengthen the region’s innovation economy, investment in SLOMA will enhance the quality of life essential to attracting and retaining the creative and professional workforce that local employers consistently cite as essential to their success. Support Downtown Vitality and the Cultural Arts District The reimagined Museum will serve as a critically needed anchor on Higuera Street and a front door to the Cultural Corridor, drawing consistent, year-round pedestrian activity that also benefits surrounding restaurants, retailers, and hotels. With 2.4 million pedestrians passing annually, the Museum will extend downtown energy beyond weekends and festivals—creating an accessible, open-to-all destination that provides a perpetual return on the City’s long-term investment in the cultural arts. San Luis Obispo Museum of Art — Grant Request 9 Advance Diversity, Equity & Inclusion The repurposed Education Center at 1010 Broad Street will more than double SLOMA’s capacity to serve school-age children and families across the county, especially in rural districts and schools serving low-income communities where formal arts instruction is limited or absent. In partnership with schools, after-school programs, and youth organizations, the Museum will deliver accessible, curriculum-aligned arts learning experiences that nurture creativity, critical thinking, and belonging—skills essential to both academic success and future workforce readiness. At the same time, through exhibitions co-curated with community partners and a sustained commitment to presenting artists and stories from underrepresented communities, SLOMA ensures that every resident and visitor can see themselves reflected and inspired, keeping creativity, inclusion, and shared identity at the center of civic life. Champion Sustainability and Stewardship The adaptive reuse of two existing downtown buildings will cut construction-related carbon emissions by more than half compared to new construction, while preserving the historic urban fabric that defines San Luis Obispo’s character. Energy-efficient systems, improved accessibility, and restored façades will reduce operational costs and advance the City’s goal of carbon neutrality by 2035—an investment that models environmental responsibility and fiscal prudence. SLOMA has retained local design and construction firms who rely on local labor to do the work. In addition, the project directly advances three of the City’s top opportunities identified in the Downtown Future Forum Report (Resonance Consultancy, 2021): establishing a Cultural Arts & Entertainment District anchored by SLOMA and its neighboring institutions; reconnecting public spaces along San Luis Creek and Mission Plaza into a cohesive cultural and pedestrian corridor; and strengthening a walkable, experience-driven downtown core that attracts residents and visitors year-round. SLOMA Ascendant: A 60-Year Legacy, a 5-Year Transformation While the organization’s roots stretch back more than 60 years to its origins as the San Luis Obispo Art Center, the past five years have painted a clear picture of what SLOMA could do in expanded space. Its performance over the past five years shows it can translate vision into impact and manage public investment with accountability. Since reopening after COVID under renewed staff and board leadership, the Museum has strengthened every facet of its work: dramatically increasing attendance, expanding arts education, growing financial capacity, and forging new civic and community partnerships. The result is an institution that honors its legacy while embracing a modern vision of access, San Luis Obispo Museum of Art — Grant Request 10 inclusion, and artistic excellence—one that stands today as a proven and accountable partner for City investment. Audience Growth Annual visitation has increased from roughly 30,000 in 2019 to 50,000 in 2025, all with free admission. Student Access With a focus on inclusivity and access, each year SLOMA distributes 2,500+ free bilingual art kits through its youth education programs. In addition, free school tours have grown from about 250 students in 2019 to 614 so far this year, with more than 60% from Title I schools. Financial Strength Contributions and grants have more than doubled—from $330,000 in FY 2019–20 to over $800,000 in FY 2024–25—reflecting growing donor confidence and institutional stability. The number of individual donors has also increased by over 50%, and since 2020 SLOMA has established a robust business sponsorship program—now 16 partners strong—alongside a steady stream of competitive grant funding that was not historically secured. Highlighting Central Coast Creativity Nearly half (43%) of the artists featured since 2020 hail from the Central Coast, shown in conversation with artists from across the nation and around the world—positioning San Luis Obispo as both a platform for local voices and a participant in the global arts dialogue. Showcasing Diverse and Underrepresented Artists Over the last five years, more than half of SLOMA’s featured exhibitions have highlighted women, artists of color, or LGBTQ+ artists. Over that same period, we’ve seen engagement with more diverse communities, many of whom are visiting SLOMA for the first time. Community Partnerships SLOMA has collaborated with organizations including the GALA Pride & Diversity Center, SLO County Arts Council, Festival Mozaic, SLO Movement Arts, and Sensorio to co-develop exhibitions and public programs that elevate local voices and reflect the region’s creative diversity. In addition, the Museum partners with a wide range of community organizations— including Woods Humane Society, the Diversity Coalition, EcoSlo, SLO County UndocuSupport, RACE Matters and others—to expand visibility, reach new audiences, and celebrate the many facets of our community. Specialized Educational and Therapeutic Programming In partnership with Cuesta College and Cal Poly, SLOMA regularly provides students with hands-on curatorial experience, exhibition training, and in-classroom learning opportunities, while newer collaborations with Adventist Health and Hospice SLO County are piloting therapeutic art workshops for patients and community members demonstrating how creativity fosters learning, healing, and human connection. San Luis Obispo Museum of Art — Grant Request 11 Civic Leadership and Recognition SLOMA has completed the Museum Assessment Program with the American Alliance of Museums and the Institute of Museum and Library Services (2021) and secured multiple, highly-competitive state and federal grants from the National Endowment for the Arts, IMLS, and California Arts Council (2021–2025). City-SLOMA Public Art Partnership Since entering a management agreement with the City in 2021, SLOMA has delivered seven permanent and temporary public art installations across San Luis Obispo. Organizational Capacity Staff has grown from three to nine, and SLOMA’s exhibitions now receive statewide and national recognition. Since launching its internship program in 2020, the Museum has mentored 25+ college interns—many first-generation students— preparing the next generation of arts professionals. Together, these outcomes demonstrate that SLOMA is not a new or untested idea—it is a thriving, forward-looking institution with the capacity, credibility, and community trust to deliver a strong return on City investment. In Summary: A Sustainable and Inclusive Vision SLOMA’s expansion embodies the City’s vision for a sustainable, inclusive, and economically vibrant community. With steady growth, diversified revenue streams, and a planned endowment, SLOMA enters this project from a position of strength and stewardship. • A Once-in-a-Generation Opportunity: The move to Higuera Street places SLOMA at the epicenter of the city’s pedestrian and cultural life—converting 2.4 million annual pedestrians into year-round cultural engagement, small-business activity, and civic pride. • Continuity of Cultural Investment: Continuity of Cultural Investment: As with the Performing Arts Center and SLO REP,partnering with SLOMA continues a proven City strategy: leveraging nonprofit institutions to achieve public goals for community vitality, education, and economic resilience—anchored downtown and across the city. • Fiscal Responsibility: The requested $2.5 million represents roughly one percent of the City’s current Capital Improvement Plan—a modest investment relative to scale, yet one that yields an outsized return in economic benefit, downtown activation, and cultural identity. San Luis Obispo Museum of Art — Grant Request 12 San Luis Obispo Museum of Art — Grant Request This opportunity is time-sensitive. The alignment of public priorities, private philanthropy, and available downtown property is rare—and is unlikely to come again soon. With design work underway, donor momentum accelerating, and matching funds on the line, City partnership at this moment would secure millions in private investment and ensure the project moves forward on schedule. By investing in this project, the City will help transform three centrally located downtown spaces into a living cultural landmark—one that strengthens civic pride, attracts visitors and employers, and strengthens downtown’s vitality. This is a moment of convergence—where vision, readiness, and opportunity come together in a shared purpose. By stepping forward now, the City can help realize a project decades in the dreaming and ensure that art and creativity remain central to the San Luis Obispo story for generations to come. 13 APPENDIX 1. Economic Impact of the Arts 3 2. Expansion Feasibility Report & Attendance Projections 5 3. Citywide Economic Development & Placemaking 7 4. Downtown Development & Cultural Anchors 9 5. The Creative Economy 11 6. The Rise of the Experiential Economy 12 7. Workforce Expansion 13 8. Arts Education: New Programming Projections 14 9. Artist Renderings: Introducing the New San Luis Obispo Museum of Art 15 10. Digital Sources: Links 18 To project the economic impact of SLOMA’s planned expansion, we based our analysis on the following sources: San Luis Obispo Museum of Art — Grant Request Appendix 1 i. Appendix Executive Summary The San Luis Obispo Museum of Art (SLOMA) and its planned expansion align closely with the City of San Luis Obispo’s broader economic, cultural, and community development goals. Collectively, the sources in this Appendix demonstrate the vital role of arts and culture in fostering economic growth, downtown vitality, workforce development, and placemaking. Economic Impact of the Arts The Arts & Economic Prosperity 5 (2015) study found that San Luis Obispo County’s nonprofit arts and culture sector generated $27.7 million in direct economic activity, supporting 916 jobs and producing $1.1 million in local government revenue. Event attendees spent an average of $30.67 per person, benefiting local restaurants, shops, and hotels. Building on this, Arts & Economic Prosperity 6 (2023) offers an impact calculator that estimates SLOMA’s operations and audiences will contribute nearly $5 million annually to the City’s economy, including $3 million in direct audience spending. Expansion Feasibility Report & Attendance Projections According to Lord Cultural Resources’ 2023 Feasibility Study, a new museum facility would conservatively attract nearly 110,000 visitors annually, giving residents and visitors alike a new reason to come downtown. Citywide Economic Development & Placemaking The City’s 2023 Economic Development Strategic Plan (EDSP) identifies Placemaking & Promotion as a key pillar for economic resilience. Central to this strategy is strengthening partnerships with and funding for the arts community, recognizing that cultural vitality enriches civic life and drives sustainable economic development. Downtown Development & Cultural Anchors Resonance Consultancy’s 2021 Downtown SLO Development Report positions cultural institutions, including SLOMA, as major catalysts for downtown revitalization. The study identifies SLOMA’s expansion as a top opportunity to enhance the city’s Cultural District, attract new visitors, and stimulate local business activity. The Creative Economy The 2025 Economic Impact of the Arts & Culture Sector report underscores the magnitude of the local creative economy: countywide, arts and culture generated $478.7 million in total economic impact and supported over 5,000 jobs. Within the City of San Luis Obispo alone, the arts produced $163 million in total impact, highlighting the sector’s growing importance. The Rise of the Experiential Economy Cushman & Wakefield’s The Rise of the Experiential Economy (2025) confirms that museums and cultural centers, though typically comprising less than 2% of urban real estate, generate up to 25% of downtown foot traffic. Workforce Expansion & Arts Education: New Programming Projections SLOMA’s workforce and education plans will create new professional positions, support local artists and educators, and expand arts education access through scholarships and new youth programs. Artist Renderings: Introducing the New San Luis Obispo Museum of Art Walk the galleries of SLOMA’s future home on Higuera! Together, these findings demonstrate that investment in SLOMA and the broader arts ecosystem is an investment in SLO’s economic vitality, cultural identity, and community well-being. The data consistently show that the arts are not peripheral—they are a central driver of prosperity, creativity, and connection. San Luis Obispo Museum of Art — Grant Request Appendix 2 1. Economic Impact of the Arts Arts & Economic Prosperity 5 is Americans for the Arts’ fifth study of the nonprofit arts and culture industry’s impact on the economy. It documents the economic contributions of the arts in 341 diverse communities and regions across the country, representing all 50 states and the District of Columbia. The Arts & Economic Prosperity 5 report included a breakdown specific to San Luis Obispo County, revealing that the local arts and culture sector generated more than $27.7 million in direct economic activity through organizational spending and visitor income. Attendees at arts and cultural events spent an average of $30.67 per person, supporting locally owned restaurants, shops, hotels, and transportation services. Notably, these figures reflect 2015 dollars—meaning the sector’s current economic impact is even greater today. The Economic Impact of Nonprofit Arts and Cultural Organizations and Their Audiences in San Luis Obispo County, CA (Fiscal Year 2015) Direct Economic Activity Arts and Cultural Organizations + Arts and Cultural Audiences = Total Industry Expenditures Total Industry Expenditures $13,693,022 $14,029,567 $27,722,589 Economic Impact of Spending by Arts and Cultural Organizations and Their Audiences Total Economic Impact of Expenditures Economic Impact of Organizations + Economic Impact of Audiences = Total Economic Impact Full-Time Equivalent (FTE) Jobs Supported 543 373 916 Household Income Paid to Residents $9,527,000 $7,315,000 $16,842,000 Revenue Generated to Local Government $507,000 $594,000 $1,101,000 Revenue Generated to State Government $632,000 $1,018,000 $1,650,000 Event-Related Spending by Arts and Cultural Audiences Totaled $14 million (excluding the cost of admission) Attendance to Arts and Culture Events Resident1 Attendees + Nonresident1 Attendees = All Cultural Audiences Total Attendance to Arts and Culture Events 381,226 75,879 457,105 Percentage of Total Attendance 83.4% 16.6% 100.0% Average Event-Related Spending Per Person $23.37 $67.48 $30.67 Total Event-Related Expenditures $8,909,252 $5,120,315 $14,029,567 Nonprofit Arts and Cultural Event Attendees Spend an Average of $30.67 Per Person (excluding the cost of admission) Category of Event-Related Expenditure Resident1 Attendees Nonresident1 Attendees All Cultural Audiences Meals and Refreshments $13.86 $20.99 $15.04 Souvenirs and Gifts $5.73 $3.78 $5.41 Ground Transportation $1.83 $7.69 $2.80 Overnight Lodging (one night only) $0.79 $32.28 $6.00 Other/Miscellaneous $1.16 $2.74 $1.42 Average Event-Related Spending Per Person $23.37 $67.48 $30.67 Source: Arts & Economic Prosperity 5: The Economic Impact of Nonprofit Arts and Cultural Organizations and Their Audiences in San Luis Obispo County. For more information about this study or about other cultural initiatives in San Luis Obispo County, visit ARTS Obispo’s web site at www.sloartscouncil.org. Copyright 2017 by Americans for the Arts (www.AmericansForTheArts.org). San Luis Obispo Museum of Art — Grant Request Appendix 3 The newly released Arts & Economic Prosperity 6 (AEP6) report is a comprehensive economic and social impact study of the nation’s nonprofit arts and culture industry. Building on a 30-year legacy as the largest and most inclusive study of its kind, AEP6 presents detailed findings from 373 regions across all 50 states and Puerto Rico—spanning communities from 4,000 to 4 million residents, and representing rural, suburban, and urban areas alike. While San Luis Obispo County did not participate in AEP6, the report includes a tool to estimate local impact. Using this calculator, projections for SLOMA alone indicate an estimated $3 million in annual audience spending directly supporting local businesses, and nearly $5 million in total yearly economic activity within the City of San Luis Obispo. Definitions: Total Expenditures: The total dollars spent by your nonprofit arts and cultural organization and its audiences; event-related spending by cultural audiences is estimated using the average dollars spent per person, per event by cultural attendees in similarly populated communities. Jobs (Employment): Employment data in IMPLAN is an annual average headcount of full time, part time, and seasonal employment. Note that a person can hold more than one job, so the job count is not necessarily the same as the count of employed persons. While IMPLAN employment adjusts for seasonality, it does not indicate the number of hours worked per day. It is not, therefore, equal to full time equivalents. This is the same definition used by the U.S. Bureau of Economic Analysis Regional Economic Accounts and the U.S. Bureau of Labor Statistics Census of Employment and Wages. Household Income: The total dollars paid to community residents as a result of the expenditures made by your arts and cultural organization and/ or its audiences. Household income includes salaries, wages, and entrepreneurial income paid to residents. It is the money residents earn and use to pay for food, shelter, utilities, and other living expenses. Government Revenue: The total dollars received by local, state and federal governments as a result of the expenditures made by your arts and cultural organization and/or its audiences. Government revenue includes revenue from local and state taxes (e.g., income, sales, lodging, real estate, personal property) as well as funds from license fees, utility fees, filing fees, and other similar sources. Local government revenue includes funds to governmental units such as city, county, township, and school districts, and other special districts. When using estimates derived from this calculator, always keep the following caveats in mind: (1) the results of this analysis are based upon the averages of similarly populated communities, (2) a unique input-output model was customized for each of these similarly populated communities, providing very specific employment, household income, and government revenue data, and (3) your results are therefore estimates, and should not be used as a substitute for conducting an economic impact study that is customized for your community. San Luis Obispo Museum of Art — Grant Request Appendix 4 2. Expansion Feasibility Report & Attendance Projections From 2022–2023, Lord Cultural Resources (LCR) worked with SLOMA’s staff, board, and members of our community to complete a feasibility study for a new building at our current site at 1010 Broad Street. The report compared similar markets and institutions to formulate projections for operations and engagement. LCR projected that SLOMA would attain an annual attendance average of 106,200 (see excerpt below). While this figure is based on SLOMA’s current space on Broad Street and does not include updated estimates based on Higuera Street’s foot traffic of about 2.4 million/ year, we have included this data as a conservative estimate of our projected attendance. San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 64 At this stage of planning, the capital and project cost estimates total about $54.8 million. This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030. In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park. Project costs also include an assumed endowment growth of $1 million. Among the exclusions at this stage are site development costs that may be beyond a basic level as well as pre-opening fundraising and other costs. The detailed capital and project cost estimates are found in Appendix C of this report. 7.2 ATTENDANCE, OPERATING REVENUE AND EXPENSE PROJECTIONS Set out here are our projections of attendance, operating revenues and expenses for the San Luis Obispo Museum of Art (SLOMA) assuming implementation of the plans/assumptions associated with its larger new facility in the directed Ideal Scenario. The projections take into account the contextual, comparables and market analyses in Chapters 2 and 3, the strategic directions in Chapter 4 and the facility and operational recommendations/assumptions in Chapters 5 and 6, as well as the judgment and experience of the consultants. 7.2.1 ON-SITE ATTENDANCE PROJECTIONS The focus in this section is on-site attendance projections associated with the expanded SLOMA facility based on agreed assumptions, benchmarking data and the judgment and experience of the consultants. To estimate the number of visitors likely to attend the future SLOMA first requires a reasonable definition of who would or would not be defined as a visitor. For the purposes of this analysis, a visitor is someone who attends an exhibition or program within the museum, including those who attend venue rentals. This definition excludes persons who only use the gift shop or who are outdoors for events or to walk the sculpture park but do not enter the museum. The definition of a visitor also excludes staff and volunteers, service, and delivery people and those who access SLOMA through the internet or through outreach to schools or other community facilities. It is on-site attendance by actual visitors. It is also important to emphasize that there is no simple computer formula that leads to accurate attendance projections. While there are ratios and formulas that have been used, including from the experience of comparable or similar institutions, all quantitative methods have weaknesses. And it is important to note, in utilizing data from other museums, that there are a variety of definitions of what constitutes a visitor and no complete certainty that San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 64 At this stage of planning, the capital and project cost estimates total about $54.8 million. This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030. In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park. Project costs also include an assumed endowment growth of $1 million. Among the exclusions at this stage are site development costs that may be beyond a basic level as well as pre-opening fundraising and other costs. The detailed capital and project cost estimates are found in Appendix C of this report. 7.2 ATTENDANCE, OPERATING REVENUE AND EXPENSE PROJECTIONS Set out here are our projections of attendance, operating revenues and expenses for the San Luis Obispo Museum of Art (SLOMA) assuming implementation of the plans/assumptions associated with its larger new facility in the directed Ideal Scenario. The projections take into account the contextual, comparables and market analyses in Chapters 2 and 3, the strategic directions in Chapter 4 and the facility and operational recommendations/assumptions in Chapters 5 and 6, as well as the judgment and experience of the consultants. 7.2.1 ON-SITE ATTENDANCE PROJECTIONS The focus in this section is on-site attendance projections associated with the expanded SLOMA facility based on agreed assumptions, benchmarking data and the judgment and experience of the consultants. To estimate the number of visitors likely to attend the future SLOMA first requires a reasonable definition of who would or would not be defined as a visitor. For the purposes of this analysis, a visitor is someone who attends an exhibition or program within the museum, including those who attend venue rentals. This definition excludes persons who only use the gift shop or who are outdoors for events or to walk the sculpture park but do not enter the museum. The definition of a visitor also excludes staff and volunteers, service, and delivery people and those who access SLOMA through the internet or through outreach to schools or other community facilities. It is on-site attendance by actual visitors. It is also important to emphasize that there is no simple computer formula that leads to accurate attendance projections. While there are ratios and formulas that have been used, including from the experience of comparable or similar institutions, all quantitative methods have weaknesses. And it is important to note, in utilizing data from other museums, that there are a variety of definitions of what constitutes a visitor and no complete certainty that San Luis Obispo Museum of Art — Grant Request Appendix 5 San Luis Obispo Museum of Art New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 65 the comparative attendance figures reported are accurate. The ratios and benchmarks nonetheless help to inform our judgment in preparing the attendance projections for the future SLOMA. Ratios For On-Site Attendance Projections The quantitative methods used to help inform the attendance projections for the future SLOMA are as follows. Extrapolation from Base Level SLOMA Figures Based on Exhibition Space Growth In 2019, SLOMA operated more like a commercial art gallery than an art museum, so its estimated 30,000 attendance figure is less reliable than the 50,000 visitors initially expected in 2023 to serve as the base level for the attendance projections, based on free admission. However, we have lowered the attendance estimate to 45,000 as the base level for the purposes of these projections taking more recent considerations into account. The size of the exhibition space did not change from 2019 to 2023 and is 3.814 net sq. ft. Using the 45,000 base level attendance figure leads to a ratio of about 11.8 visitors per net sq. ft. of exhibition space. The assumption is that the Ideal Scenario expansion of SLOMA facility will increase the total exhibition space to 9,000 net sq. ft. Applying the same ratio of visitors per square foot exhibition space leads to an estimate of about 106,200 visitors in a stabilized year of operation, assumed to be Year 3. Extrapolations From Selected Comparable Art Museums Chapter 2.2 includes detailed attendance, facility, operational and financial data as reported by three non-collecting and three collecting art museums/institutes. The attendance data used largely pre-COVID data regarding the six are set out below leading to ratios for the stabilized Year 3 of the future SLOMA facility and operation based both on the size of exhibition space and the size of the regional population. Average and median figures are set out and we have used the midpoint between those figures as the basis for the ratios. San Luis Obispo Museum of Art — Grant Request Appendix 6 3. Citywide Economic Development & Placemaking In July 2023, the City Council adopted an updated Economic Development Strategic Plan (EDSP), aimed at advancing the economic vitality of San Luis Obispo. The plan outlines strategies to strengthen the City’s economic development initiatives while embedding the principles of sustainability, diversity, equity, and inclusion. It also emphasizes retaining existing businesses, expanding the arts and culture scene, and enhancing the vibrancy of Downtown. The second pillar of the plan, Placemaking & Promotion, specifically highlights strengthening the City’s working relationships with, and financial support of, the arts community as a key strategy for enriching cultural offerings and economic development throughout San Luis Obispo. For the 2023 Economic Development Strategic Plan (EDSP), the plan framework has been updated to respond to the dramatic changes that have taken place in the intervening years, both in terms of the City’s internal efforts and the external economic development landscape. MISSION STATEMENT Promote, encourage, and enhance an economic environment that is dynamic and resilient with a focus on sustainable and equitable policies, programs, and processes. GUIDING PRINCIPLES ECONOMIC RESILIENCE Maintaining a dynamic economic and business environment. EQUITABLE & INCLUSIVE ECONOMIC DEVELOPMENT Expanding economic opportunities for all residents and businesses in San Luis Obispo. SUSTAINABLE ECONOMIC DEVELOPMENT Ensuring economic vitality through climate and system focused sustainable growth. HOLISTIC APPROACH Enhancing internal and external collaboration for effective execution and implementation. REGIONAL COLLABORATION Expanding partnerships with organizations across the region. MAJOR PILLARS BUSINESS & ENTREPRENEUR VITALITY Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities. PLACEMAKING & PROMOTION Maintaining the city’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors. TALENT DEVELOPMENT & ATTRACTION Supporting initiatives that develop the skills needed to secure quality jobs as well as attract and retain a skilled and diverse workforce. ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE PREPARED FOR THE CITY OF SAN LUIS OBISPO San Luis Obispo Museum of Art — Grant Request Appendix 7 STRATEGIES PILLAR 1 BUSINESS & ENTREPRENEUR VITALITY 1.1. BUSINESS RETENTION & EXPANSION. Develop a proactive and targeted approach to identify and address the needs of existing businesses, while creating an environment that fosters growth and innovation. 1.2. ENTREPRENEURIAL SUPPORT. Continue to bolster the entrepreneurial ecosystem by improving access to resources, education, and networks for entrepreneurs. 1.3. BUSINESS PREPAREDNESS, SUSTAINABILITY & RESILIENCY. Implement disaster preparedness measures that enhance the City’s ability to respond to economic disruptions and effectively support business recovery following natural disasters. 1.4. SMALL BUSINESS DEVELOPMENT. Continue to support the small business community to sustain growth. 1.5. BUSINESS SUPPORT INFRASTRUCTURE. Maintain efforts to develop and grow business support infrastructure and tools. PILLAR 2 PLACEMAKING & PROMOTION 2.1. QUALITY OF PLACE PROMOTION. Bolster efforts to promote the City as an appealing destination for all people to live, work, visit, and invest. 2.2. WELCOMING ENVIRONMENT. Create an inclusive and friendly environment for residents, workers, and visitors. 2.3. DOWNTOWN VITALITY. Continue to support and maintain a vibrant and dynamic urban core that attracts people and businesses. 2.4. CULTURAL VITALITY. Strengthen working relationships with and maintain financial support of the arts community to enrich the cultural offerings throughout the City. 2.5. INCLUSIVE NEIGHBORHOOD PLANNING. Encourage inclusive neighborhood planning efforts that benefit residents and encourage both housing production and economic activity. PILLAR 3 TALENT DEVELOPMENT & ATTRACTION 3.1. SYSTEM DEVELOPMENT. Encourage the continued strengthening of the system to create Moderate Income + jobs. 3.2. EMPLOYER AND EMPLOYEE INTEGRATION. Develop methodologies, tools, and programs to welcome and acclimate new employers and employees to the community. 3.3. TALENT ATTRACTION AND RETENTION. Position the City as not just a place to visit but also a desirable location to live and work. 3.4. EDUCATIONAL PARTNERSHIPS. Leverage educational partnerships to create and grow pathways to Moderate Income+ jobs that strengthen the local economy. View the full plan and future updates online at https://www.slocity.org/business/economic-development/economic-development-strategic-plan. San Luis Obispo Museum of Art — Grant Request Appendix 8 4. Downtown Development & Cultural Anchors The City of SLO engaged Resonance Consultancy to create a Downtown SLO Development Recommendations report in 2021. The report explores residential, commercial, and public investment opportunities with local stakeholders as part of a Downtown Future Forum visioning workshop. The City’s own report identified Cultural Institutions like SLOMA as a major asset, as they offer unique activities to residents and visitors, and are a significant draw for attracting more people downtown. The report also listed the Cultural District as a major opportunity for promoting SLO’s unique cultural scene throughout the region. re s o n a n c e c o . c o m @R e s o n a n c e C o CULTURAL INSTITUTIONS The museums and theaters located downtown offer unique activities to residents and visitors, and are a significant draw for attracting more people downtown. 14 re s o n a n c e c o . c o m @R e s o n a n c e C o CULTURAL DISTRICT The concentration of cultural institutions and venues is an opportunity to promote SLO’s cultural scene in the region. 50 San Luis Obispo Museum of Art — Grant Request Appendix 9 The Downtown SLO Development Recommendations report specifically singled out the San Luis Obispo Museum of Art’s expansion as a major opportunity for Downtown SLO’s economic and cultural development. re s o n a n c e c o . c o m @R e s o n a n c e C o SLO MUSEUM OF ART EXPANSION An expansion of the Museum of Art could act as a catalyst for cultural programming in Downtown SLO. 51 San Luis Obispo Museum of Art — Grant Request Appendix 10 5. The Creative Economy The 2025 Economic Impact of the Arts & Culture Sector report, created in collaboration with SLO County Arts, the City of El Paso de Robles, and the City of San Luis Obispo, detailed the immense impact of the arts and culture sector on the economies of SLO County. Countywide, arts and culture organizations like SLOMA contributed to “$291.1 million in visitor spending, yielding a total economic impact of $478.7 million, supporting 5,163 jobs countywide.” The City of San Luis Obispo alone received $99 million in arts-related spending with a total impact of $163 million. The study also found that the role of local government and community support for arts and culture organizations was a significant point of discussion among focus groups, with participants specifically calling for increased government funding of the arts. San Luis Obispo Museum of Art — Grant Request Appendix 11 6. The Rise of the Experiential Economy A 2025 Cushman & Wakefield study (The Rise of the Experiential Economy) found that thriving downtowns depend on experience-focused anchors such as museums, theaters, and cultural centers. These anchors typically represent less than two percent of urban real estate but they generate roughly one-quarter of total foot traffic in thriving downtowns. In other words, SLOMA’s planned expansion requires a relatively small investment that will generate a significant, positive impact for our region in general, and downtown SLO in particular. San Luis Obispo Museum of Art — Grant Request Appendix 12 7. Workforce Expansion Currently, SLOMA has a staff of 9 talented individuals (4 FT, 5 PT), with an annual payroll of about $530,000. Based on the recommendations of the 2023 Feasibility Study by Lord Cultural Resources, we expect to almost double our professional staff within the first year (Table A). Seasonal contractors including exhibiting artists, teaching artists, and department interns are listed in Table B. A. SLOMA Employees (Current + New) B. Artists, Art Educators, and Interns San Luis Obispo Museum of Art — Grant Request Appendix 13 8. Arts Education: New Programming Projections Current space limitations restrict both the scope of our programming and our community’s access to arts education. Transforming SLOMA’s existing facility at 1010 Broad Street into a dedicated Education Center will significantly expand our education capacity, allowing us to collaborate with more educational partners, grow current offerings, and introduce new programs for youth and adults including summer camps, after-school classes, and workshops. The following projection outlines anticipated Year 1 program participation numbers for youth programming, with the majority of participants hailing from San Luis Obispo and neighboring cities. Importantly, all youth programs will include scholarships and financial assistance for low-income families, ensuring that our educational opportunities remain fully accessible to ALL. SLOMA’s free youth education programs, like our popular Second Saturdays events and school tours, will continue. Projections are based on comparable institutions and current enrollment in SLOMA’s existing programs. C. New Youth Programming: Engagement Projections San Luis Obispo Museum of Art — Grant Request Appendix 14 9. Artist Renderings: Introducing the New San Luis Obispo Museum of Art Walk through the galleries of SLOMA’s new home on Higuera. Preliminary rendering: Higuera Street entrance Lobby (center) with a museum gift shop (left) San Luis Obispo Museum of Art — Grant Request Appendix 15 Trust Automation Gallery, with views and access to a creekside patio overlooking Mission Plaza The second of four beautiful galleries capable of exhibiting a variety of artistic media San Luis Obispo Museum of Art — Grant Request Appendix 16 Another spotlight gallery and a dramatic alcove for hanging art installations The creekside patio overlooking historic Mission Plaza will be a community asset and the perfect spot for artist talks, small performances, civic dialogues, and cultural celebrations Renderings by RRM Design GroupSan Luis Obispo Museum of Art — Grant Request Appendix 17 10. Digital Sources: Links We have included links to content available online and referenced in this Appendix. 1a. Americans for the Arts’ Arts & Economic Prosperity reports, 5th edition Source: https://www.americansforthearts.org/sites/default/files/pdf/2017/by_program/reports_and_ data/aep5/map/CA_SanLuisObispoCounty_AEP5_OnePageSummary.pdf 1b. Arts & Economic Prosperity: 6th edition organizational calculator Source: https://aep6.americansforthearts.org/calculator 2. City of SLO’s Economic Development Strategic Plan Source: https://www.slocity.org/business/economic-development/economic-development-strate- gic-plan 3. Downtown SLO Development Recommendations, 2021 Source: https://www.slocity.org/home/showpublisheddocument/30130/637557419326730000 4. 2025 Economic Impact of the Arts & Culture Sector report Source: https://slocountyarts.org/creative-economy-report 5. The Rise of the Experiential Economy Source: https://www.cushmanwakefield.com/en/united-states/insights/the-rise-of-the-experien- tial-economy San Luis Obispo Museum of Art — Grant Request Appendix 18