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HomeMy WebLinkAbout11/10/2026 Item 7a, Standish Otta, Kaitlin From:Otta, Kaitlin Sent:Monday, November 9, 2026 11:45 AM Subject:Fw: SLOMA Update Attachments:SLOMA Phase II_City Council Packet.pdf From: Leann Standish < Sent: Tuesday, October 27, 2026 4:12 PM To: Stewart, Erica A <estewart@slocity.org>; Francis, Emily <EFrancis@slocity.org>; Marx, Jan <jmarx@slocity.org>; Shoresman, Michelle <mshoresm@slocity.org>; Boswell, Mike <MBoswell@slocity.org> Cc: Ermina Karim < ; Hermann, Greg <GHermann@slocity.org>; Harnett, Natalie <nharnett@slocity.org>; Erica Ellis < Subject: SLOMA Update Dear Mayor Stewart and Honorable Council Members Francis, Boswell, Marx and Shoresman. I want to first thank you for your invaluable time and insight. Our visits and your thoughtful feedback help inform our path forward for SLOMA's new role in the center of downtown SLO. We are pleased to share this comprehensive update with you. As always, we welcome your feedback and look forward to celebrating our next milestones with you! Regards Leann Standish 1 PROPOSAL FOR PHASE II SUPPORT: SECURING SLOMA’S FUTURE IN DOWNTOWN SAN LUIS OBISPO 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 Celeste Hope Executive Committee Ryan Ashlock Board Member Ryan Caldwell Board Member John Dunn Board Member Lindsey Harn Board Member Beya Makekau Board Member Mike Quamma Board Member Missy Reitner-Cameron Board Member Amy Wright Board Member Leann Standish Executive Director October 27, 2026 Dear Mayor Stewart and Honorable Councilmembers Boswell, Francis, Marx, and Shoresman: Thank you for your continued support of the San Luis Obispo Museum of Art (SLOMA) and our vision for an expanded home for art in our community. We are pleased to share an important milestone in that effort and return to the Council to request your consideration of support for the next phase. Last November, the City Council unanimously approved a $500,000 grant for Phase I, with the intention of considering an additional $2 million investment in Phase II upon completion of certain grant requirements. The City’s early support helped inspire an outpouring of community generosity. We have now met those requirements and remain on track to open our new Higuera Street exhibition hub in summer 2027 (see Appendix 1). We respectfully request that the Council commit $2 million toward the future purchase of the property. With the Phase I grant requirements fulfilled, construction moving forward, and substantial private support secured, this investment would help ensure that the new museum becomes a permanent cultural asset for San Luis Obispo. As of September 2026, SLOMA has raised 100% of Phase I construction costs and secured 97% of the $11.4 million Phase I campaign goal, including 2 contingency funding. Nearly $5.3 million has also been raised toward the $10 million Phase II goal, which includes the property purchase and an endowment. This progress demonstrates substantial community commitment to both opening the expanded museum and securing its long-term future. The City’s combined investment of $2.5 million would help make possible a cultural project currently estimated at $21.4 million, with approximately 88% of the cost supported by private philanthropy. For every dollar invested by the City, more than seven dollars would come from other sources. The return for our community would be lasting: expanded access to art and education, new reasons to visit and spend time downtown, and a permanent cultural asset for residents and visitors. We believe this represents a thoughtful use of public dollars, building on substantial community generosity to deliver benefits for generations to come. A commitment now would help build on this fundraising momentum and establish a clear path toward permanent ownership. It would also advance priorities the City has already adopted for cultural vitality, downtown economic resilience, and a welcoming community. ADVANCING THE CITY’S STRATEGIES & PRIORITIES SLOMA’s expansion directly advances the City’s strategic goals for economic and cultural development. The Economic Development Strategic Plan adopted by the Council in July 2023 identifies stronger partnerships and direct capital investment in local arts institutions as strategies within its Placemaking & Promotion focus area. The proposed investment in SLOMA offers a concrete opportunity to put those strategies into practice, strengthening downtown activity, cultural access and the museum’s long-term presence in our community. Pillar 2.1: SLOMA’s expanded facility will promote the City’s Quality of Place promotions, showing SLO as an appealing destination to live, work, and visit. • Pillar 2.2: As an inclusive institution, SLOMA will also help promote the City as a Welcoming Environment for residents and visitors alike. • Pillar 2.3: As a major feature of the downtown economic engine, SLOMA will contribute to Downtown Vitality by attracting over 100,000 visitors annually. San Luis Obispo Museum of Art — Phase II Support 3 • Pillar 2.4: Strengthening the civic-public relationship between the City and SLOMA promotes Cultural Vitality and enriches cultural and artistic offerings throughout SLO • Pillar 2.5: By directly supporting an environmentally conscious approach to neighborhood planning through creative reuse and business diversification, the City’s support of Phases I and II of SLOMA’s campaign advances Inclusive Neighborhood Planning while promoting the providential allocation of civic resources (see Appendix 2). SLOMA’s expansion also directly supports San Luis Obispo’s 2025–2027 City Goal #1: Cultural Vitality, Economic Resilience, and Fiscal Sustainability. Specific tactics supported by SLOMA’s expansion include: • Improve the local business environment, support Downtown vitality, and help businesses thrive. SLOMA is projected to draw over 100,000 visitors annually to the downtown business core. These visitors will support downtown vitality and our business neighbors through additional retail and hospitality spending, as well as paid parking. • Support the cultural arts, including the Cultural Arts District. SLOMA’s new exhibition space will strengthen the Cultural Corridor by connecting pedestrian activity along Higuera Street with Mission Plaza. Our Education Center at 1010 Broad will continue to contribute to this network alongside SLO History Center, the SLO Children’s Museum, and the future SLO REP Theatre. Together, these institutions will offer more reasons to explore downtown and a richer cultural experience for residents and visitors. • Support initiatives to assist the local workforce to develop the skills needed to secure quality jobs and local businesses and employers to attract and retain talent. SLOMA’s staff is projected to more than double with new quality positions in education, administration, visitor services, and operations. With the addition of seasonal art camp positions and exhibiting artist opportunities, the expansion will support a range of new, locally-based employment opportunities. • Promote the City as an appealing community for people to live, work, visit, and invest. The expanded museum will give residents, visitors and prospective employees and employers another compelling reason to choose San Luis Obispo. Its exhibitions, educational programs and gathering spaces will strengthen the distinctive sense of place and cultural quality of life that help our community attract and retain talent, businesses and investment. • Balance operational needs and infrastructure investments with consideration of the long-term fiscal sustainability of the City organization. $2 million represents less than 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. ECONOMIC BENEFITS FOR DOWNTOWN AND THE SLO COMMUNITY SLOMA’s expanded museum will bring more people into downtown and create additional opportunities for neighboring businesses. Based on projected attendance and arts-related San Luis Obispo Museum of Art — Phase II Support 4 San Luis Obispo Museum of Art — Phase II Support visitor spending, the expanded museum is estimated to support $3–5 million in annual downtown spending on food, retail, parking and lodging (see Appendix 3). The museum’s economic contribution will also extend through its employment and purchases of local goods and services, supporting artists, educators, contractors, and other businesses. More than tripling our gallery space and adding a café, event space, and outdoor gathering areas will allow SLOMA to contribute more to the local economy. Local and national research reinforces the importance of this activity. Research from Americans for the Arts shows arts patrons spend an additional $25–$70 per visit on local food, retail, parking, and lodging. The expanded Museum is projected to welcome over 100,000 visitors per year, serving as both a destination and a catalyst for surrounding businesses. Meanwhile, the 2025 Economic Impact of the Arts & Culture Sector report estimates $99 million in arts-related spending within the City of San Luis Obispo and a total economic impact of $163 million. These findings provide local context for SLOMA’s expansion and the role cultural institutions play in supporting the downtown economy (See Appendix 4). BUILDING ON SAN LUIS OBISPO’S TRADITION OF CIVIC INVESTMENT San Luis Obispo’s character has been shaped in part by City leaders who invested in places that bring people together and enrich community life. Mission Plaza, the Performing Arts Center and the new SLO REP Theatre reflect a longstanding recognition that cultural facilities and public spaces contribute to both quality of life and economic vitality. Each offers an example of public investment creating lasting community value. • Mission Plaza (1970): At a time when closing a portion of Monterey Street was controversial and downtown merchants expressed concern about losing traffic and parking, the City moved forward with an ambitious vision: transforming a section of the street into a pedestrian plaza in the heart of downtown. Dedicated in 1970, Mission Plaza has since become one of San Luis Obispo’s defining public spaces and a model of small-city placemaking. What was once a bold and uncertain decision is now so integral to the character of downtown that it is difficult to imagine the city without it. • Performing Arts Center (1996): After decades of community discussion, the City, Cal Poly, and the Foundation for the Performing Arts Center came together to make a world-class performing arts venue possible. The $30 million project was made possible through this unique public-private partnership, including substantial City and Cal Poly participation and $12.5 million raised through the Foundation. The PAC opened its doors in 1996 and has since become a cornerstone of the region’s cultural life, providing a home for performances, community events, local arts organizations, and educational programs. The City continues to participate in the partnership that helps sustain the facility and keep it accessible to the community. 5 San Luis Obispo Museum of Art — Phase II Support • SLO REP Theatre (2020s): Today, the City is once again investing in the cultural infrastructure of downtown. With $6.7 million in City grant funding set aside for the new SLO REP Theatre, the project represents a significant commitment to strengthening the city’s Cultural Arts District. When complete, the new venue is expected to bring approximately 50,000 patrons downtown each year and generate more than $5 million in annual economic impact. These investments have helped create the downtown and cultural life that residents and visitors value today. Their benefits extend beyond individual venues through the people they bring together, the businesses they support and the experiences they make available to our community. Securing SLOMA’s permanent home would build on this tradition. Alongside Mission Plaza, the History Center, the SLO Children’s Museum, and the future SLO REP Theatre, the expanded museum would strengthen a connected, walkable cultural district and deepen the value of the City’s investments in this area. A public contribution toward the property purchase would help ensure that the substantial private investment being made in SLOMA’s new home continues to serve San Luis Obispo for generations. WHY A CITY COMMITMENT MATTERS NOW As previously stated, we are seeking a $2 million commitment from the City of San Luis Obispo toward the future purchase of our newly renovated facility. Under our Lease Agreement with the building owners, we anticipate exercising our purchase option as early as August 2030. A City commitment now would help us secure the resources needed to make that purchase possible. Why is a City commitment important now? • Phase I is nearing completion. Our $11.4 million Phase I campaign is approaching the finish line, with 100% of construction costs raised and 97% of the overall goal secured as of September 2026, including our contingency fund. As construction concludes, our next responsibility is to ensure that the facility being created through public and private investment becomes SLOMA’s permanent home. • The purchase campaign is underway now. We have raised nearly $5.3 million toward our $10 million Phase II goal, which includes $7.4 million for the future purchase of the facility and about $2 million for an operational endowment. A City commitment now would establish an important foundation for the remaining campaign and demonstrate that the community is investing in SLOMA’s long-term permanence, not simply its construction. 6 San Luis Obispo Museum of Art — Phase II Support • City leadership can help unlock additional private giving. The City’s Phase I investment last fall provided an important signal of public confidence in the project. Following that commitment, donors responded with extraordinary enthusiasm and generosity, helping propel the campaign to its current level of success. As we enter Phase II, a City commitment can send that signal again: that San Luis Obispo believes in SLOMA’s future and is willing to invest in securing it. That public commitment can help inspire the private philanthropy needed to close the remaining gap. • The timing creates an opportunity to plan responsibly. Securing a commitment now gives SLOMA and the City greater certainty as we plan for the facility’s eventual purchase. It allows us to build the purchase campaign deliberately over the next several years rather than waiting until the purchase window is imminent and then seeking to assemble the necessary resources on a compressed timeline. The City has already demonstrated its belief in this project through its Phase I investment and its recognition of the proposed $2 million future purchase commitment in our Grant Agreement. Formalizing that commitment now would carry this partnership forward, help attract the remaining private support, and protect the long-term value of the investment already being made in SLOMA’s new home. The opportunity is to ensure that a newly renovated museum becomes a permanent cultural asset for San Luis Obispo. A PROPORTIONATE PUBLIC INVESTMENT The requested $2 million would represent one-quarter of the $7.4 million property purchase goal, with the remaining three-quarters anticipated to come from philanthropy and other funding. The separate ~ $2 million endowment goal within Phase II would provide resources for future building maintenance, repairs and capital needs, helping ensure the long-term sustainability of the expanded Museum. Together with the City’s initial $500,000 grant, this contribution would represent approximately 12% of the overall project cost with the remaining 88% funded through private philanthropy. The City’s participation would help secure a permanent cultural asset supported predominantly by community generosity. 1. A $2 million investment is consistent with San Luis Obispo’s own history of investing in cultural infrastructure. San Luis Obispo has long recognized that cultural facilities are not simply amenities; they are part of the infrastructure that makes a city vibrant, distinctive, and economically resilient. From Mission Plaza to the Performing Arts Center and, most recently, the planned SLO REP Theatre, the City has made consequential investments in cultural assets that continue to serve residents and attract visitors for generations. 7 San Luis Obispo Museum of Art — Phase II Support A $2 million commitment to SLOMA would be consistent with the City’s established practice of making significant, one-time investments in cultural infrastructure in order to further economic vitality and quality of life. The question, therefore, is not whether the City should invest in cultural infrastructure— San Luis Obispo has repeatedly answered that question in the affirmative. The question is whether SLOMA’s permanent home merits a place among the next generation of those investments. 2. The City has already recognized $2 million as an appropriate level of investment. Our $2 million figure is not a new or unexpected request. The City has already signaled its acceptance of this level of investment: when the City committed funding to SLOMA’s Phase I campaign last fall, the City and SLOMA also discussed the anticipated future $2 million contribution toward the purchase of the new facility. That commitment was subsequently reflected in the City’s grant agreement with SLOMA. This history matters. The proposed $2 million is not an arbitrary figure introduced at the end of the campaign or an expansion of the City’s previously contemplated role. It represents the second component of a partnership that the City has already acknowledged and begun to support. RISK ASSESSMENT All investments carry some degree of risk. The City of San Luis Obispo has already taken prudent steps to assess and mitigate that risk through its partnership with SLOMA. As a condition of the Phase I Grant Agreement, the City required SLOMA to develop and submit a three-year operating plan demonstrating the organization’s financial sustainability beyond the City’s initial investment. This process provided an opportunity to evaluate SLOMA’s readiness for the transition to a larger facility, as well as the organization’s ability to responsibly manage the increased operating costs and opportunities associated with expansion. SLOMA has fulfilled this requirement and has submitted its three-year operating plan to the City as part of its required quarterly updates for Phase I support (see Appendix 5). The operating forecast for the new museum is grounded in extensive research and planning. It draws on the comprehensive feasibility study conducted by Lord Cultural Resources, along with input from local business owners, community partners, and other experts familiar with San Luis Obispo’s cultural and economic landscape. This research has helped SLOMA identify both the anticipated costs of operating a larger facility and opportunities to strengthen and diversify revenue as the organization grows. Importantly, the new facility is designed to expand SLOMA’s capacity to generate earned revenue while increasing public access to its programs and exhibitions. Our projections indicate significant untapped potential in areas including retail sales, event rentals, café 8 San Luis Obispo Museum of Art — Phase II Support operations, classes and educational programs, and partnerships with other organizations. Expanding these revenue streams will reduce reliance on any single source of income and create a more diversified operating model over time. SLOMA is also approaching this transition from a position of demonstrated momentum. The organization has successfully grown attendance, expanded partnerships, increased philanthropic support, and strengthened programming in recent years, while completing the planning and fundraising necessary to bring the new museum to fruition. The City’s proposed $2 million commitment would therefore build on an investment that is already being carefully planned, monitored, and leveraged by substantial private support. With a documented operating plan, a research-informed financial forecast, diversified revenue strategy, and growing philanthropic and community support, SLOMA is positioned to manage the transition responsibly and sustain the new museum as a long-term civic and cultural asset. BUILDING THE FUTURE TOGETHER The City of San Luis Obispo’s support can once again serve as a catalyst for community investment. The City’s Phase I commitment demonstrated public confidence in SLOMA’s expansion and helped inspire extraordinary private support. A $2 million commitment toward Phase II can send that same powerful signal as SLOMA works to secure its permanent home. The timing of that commitment is especially important. We recognize that committing funds several years in advance is not the City’s customary practice, particularly given today’s financial challenges and competing priorities. But this is an extraordinary opportunity, years in the making, and one where a commitment today can make a meaningful difference in what we are able to accomplish tomorrow. This is not simply an investment in a building. It is an investment in the permanence of a cultural institution, the vitality of downtown, and the future of San Luis Obispo. It is an opportunity to secure a place that will inspire creativity, foster belonging, bring people together, and enrich our community. 9 San Luis Obispo Museum of Art — Phase II Support In summary, by committing $2 million toward the purchase of our renovated facility, the City can help leverage additional private philanthropy; secure SLOMA’s permanent home; and ensure that the economic, educational, and cultural benefits of this investment continue to serve San Luis Obispo for generations to come. We invite the City to carry this partnership forward by committing $2 million toward the future purchase of SLOMA’s new home. Together, we can turn a vision decades in the making into a lasting cultural legacy for San Luis Obispo. Thank you for your thoughtful consideration, your stewardship of our community’s resources, and your continued partnership in bringing this vision to life. Leann Standish SLOMA Executive Director 10 Ermina Karim SLOMA Board Co-Chair San Luis Obispo Museum of Art — Phase II Support APPENDIX 11 Pg 12 Appendix 1: City Grant Conditions Checklist Pg 13 Appendix 2: City of SLO’s Economic Development Strategic Plan Pg 14 Appendix 3: Americans for the Arts: Arts & Economic Prosperity 6 Plan Pg 15 Appendix 4: Americans for the Arts: Arts & Economic Prosperity 5 Plan: SLO County Data Pg 16 Appendix 5: SLOMA 3-Year Operating Plan Trust Automation Gallery Forbes Gallery Thoma Family Welcome Desk and the Barbara Renshaw Museum Shop Harold J. Miossi Network San Luis Obispo Museum of Art — Phase II Support APPENDIX 1: CITY GRANT CONDITIONS According to Section 3 of the Grant Agreement dated February 23, 2026, SLOMA shall satisfy the following required conditions prior to any disbursement of Grant Funds by CITY. SLOMA is proud to report that all Grant Conditions required for Phase I & II support have been met. a. Maintain its 501(c)(3) non-profit status. b. Shall secure all other grant funds, donations, pledges, or financing necessary to complete Phase 1 of the New Museum, inclusive of the amount of Grant Funds provided by the CITY pursuant to this Grant Agreement, and shall first utilize (or provide for first utilizing) all other grant funds, donations, or financing then available (collectively “Other Available Funding”) for the New Museum prior to any request for reimbursement from CITY. However, SLOMA’s initial reimbursement request for Grant Funds may be made prior to complete exhaustion of Other Available Funding, as necessary, to ensure continued availability of funding to complete the New Museum. c. Secure all necessary project entitlements and building permit(s) for Phase 1 of the New Museum that may be applicable as further described in Paragraph 6 [of the Grant Agreement]. d. Submit for CITY review and approval a fundraising plan demonstrating project feasibility, including cost estimating and project schedule. e. Submit for CITY review and approval forecasted budgets for the first three years of operating the New Museum demonstrating a fiscally sustainable business model. f. Identify additional public benefits associated with the New Museum that can reasonably be facilitated and implemented, such as public art in the creek walk area or similar. 12 San Luis Obispo Museum of Art — Phase II Support APPENDIX 2: CITY OF SLO’S ECONOMIC DEVELOPMENT STRATEGIC PLAN 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 13 APPENDIX 3: ECONOMIC IMPACT The 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.14 APPENDIX 4: COUNTYWIDE ARTS SPENDING 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 i n San Luis Obispo County, visit ARTS Obispo’s web site at www.sloartscouncil.org. Copyright 2017 by Americans for the Arts (www.AmericansForTheArts.org).15 APPENDIX 5: PLANNING FOR SUSTAINABILITY From 2022–2023, Lord Cultural Resources (LCR) worked with SLOMA’s staff, board, and community members to complete a feasibility study for a new facility at our current site at 1010 Broad Street. The study examined comparable markets and institutions to develop projections for operations and community engagement. Building on this research and input from local business partners, SLOMA has developed a three-year Operating Plan outlining projected income and expenses during the transition and beyond. The plan provides a realistic roadmap for sustainable operations, projecting that SLOMA will achieve a positive operating balance after its first full year in the new facility. These projections demonstrate the long-term viability of the expansion and reinforce SLOMA’s position as a sound investment for the City. This projection was a requirement laid out in the City’s Grant Agreement and has been included in our Phase I quarterly reports already accepted by the City. 16San Luis Obispo Museum of Art — Phase II Support