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Agenda - 02-21-2012-13 (2)
sin-�6rm0L—h on Z-f-errm FEBRURARY 6th, 2012 TO: BOARD OF COUNTY COMMISSIONERS - Chair Pelissier, Vice Chair Hemminger, Commissioners Foushee, Gordon, McKee, Jacobs and Yuhasz FROM: Frank W. Clifton, Jr., County Manager SUBJECT: WHITTED BUILDING FORMER LIBRARY SPACE REUSES ANALYSIS — BACKGROUND INFORMATION OVERVIEW In 2010 once the County moved its northern library operations to the new facility located off Margret Street in Downtown Hillsborough the former library space in the Whitted Building became vacant. Different approaches and considerations have been given to reuse of that space along with space in the Whitted Building that formerly housed the County's Department of Social Services. Discussions with the Orange County School Board moved toward their evaluation of using 'all' of the vacated space in the Whitted Building for their use. However, State budget cuts led to a realization that much of the need for the use of that space and the cost of renovation was negated by dour budget projections at the State level. (Note: the school system has since entered into an agreement with the County to reuse the former EMS headquarters located at New Hope and Highway 86.) In the ensuing period, other County budget decisions and departmental needs for public services led to actions that reused portions of the Whitted Building and incurred building modifications and improvements to the County. The Community Development Department moved from its former offices on the ground floor to a location formerly housing DSS on an upper floor in the newer wing of the facility. Additionally, based upon budget driven operational considerations, the Health Department expanded the Hillsborough dental clinic operations along with an extensive remodeling of the lower and second floor Whitted Building space for Health Department needs. During this process, improvements and building safety issues were addressed (inclusive of a fire sprinkler system installation). The building is structurally sound. However, some uses may create added construction considerations associated with needs (i.e. major renovation to restroom facilities based on public attendance volumes). NON COUNTY USE REQUEST — Orange County Cultural Center A private (yet to be incorporated) non - profit group gained a $10,000 seed money grant from the Town of Hillsborough to pursue a private /public partnership to develop a proposal for the reuse of the former Whitted Building library space as a community cultural facility. The group sought assistance from an architect and worked on a plan /proposal for it to become an active programmer of artistic and cultural activities within the Whitted Building (IF, the County would make the space available). The group's "Strategic Business Plan" (9/8/11) is Attachment 1 to this memorandum. Based upon direction from the County Commission, County Staff analyzed these issues from several important perspectives including but not limited to: A. Compatibility with existing and future County uses /operations the proposed Cultural Center would create. B. Financial viability of a non - profit group given control of the facility would have to meet various aspects of creating a sustainable operation NOT requiring an on -going subsidy from the County. C. Viability and receptiveness of the Town to become a participant in this venture and assume some level of financial commitment and operational liability for the facility. D. The cost and type of modifications needed to bring the building into compliance with federal, state and local codes required for activities and who /how those obligations would be met E. The potential need for the County to use this space for governmental purposes in the future. Without attempting to (within this memo) summarize each of the relevant points within the group's strategic business plan, it is our opinion that as proposed it is unlikely this group (regardless of how well intentioned their efforts) will successfully achieve their desired outcomes. The business plan depends heavily on assumptions that are likely to be difficult to accomplish. There are elements of the planned uses for the facility that would /could conflict with existing county operational functions at the facility. More importantly, the County has heavily invested in this asset and potential conflicts of use could place that investment at risk. (These issues have been discussed with the group's leadership and they fully understand our concerns.) TOWN INVOLVEMENT —Staff level discussions Overcoming some of the financial and liability issues that the non - profit group's operational control of the former Whitted Library space presented was attempted to be addressed via some formalized agreement with the Town of Hillsborough. Although no formal discussions have occurred among the elected leadership of the Town and County on these issues, town and county staffs have discussed various elements (subject to elected leaders formal actions at some point in the future). ISSUES: It is apparent the Town does not have available financial resources it would be willing to allocate toward this project beyond the $10,000 seed money given the non - profit group that brought forth the proposal. There seems to be some doubt that the Town wants to accept any formalized responsibility or liability for the operational control of the allocated space. (Reminder, the initial assumption under which this process went forward was that the Town and County would enter into a formal agreement where the space would be leased to the Town under certain terms and the Town would then allocate use of the space to this non - profit (or another) BUT the Town would retain the liability and responsibility for the condition, use and upkeep within the walls of the space allocated via the terms of the County /Town agreement. At the Staff level, that does not appear to be a realistic option. In addition and possibly more relevant, it appears the Town's parking regulations present a significant hurdle to the proposed uses envisioned by the non - profit group's efforts to develop a cultural center. The activities and participation generation sought by the non - profit and currently available parking spaces are in conflict and prevent occupancy as envisioned by the group. Suggestions to reduce County related activities or convert existing recreational fields into parking areas does not seem to mesh with the County's continued use of the facility and /or the visions held by the cultural center supporters. (Note: This effort initially gained financial support from the Town. If parking restrictions severely limit or eliminate most of the intended uses proposed in conceptual plans for the development of a cultural center at the Whitted site then the agreement between the Town and County is moot.) FURTHER CONSIDERATIONS —A possible alternative Assuming that the Town and County'might' (in some agreeable manner) find a way to either mitigate or overcome the hurdle presented by the Town's parking regulations, there may be a method to address several community needs while addressing a continuing County need. (The following example is offered as an option and not aimed settle all elements of the issues discussed, but rather to stake out how the County, Town and non - profit might move forward to address common interests.) A. The County has a planned enhancement to the Link Center to construct a fixed meeting space for the BOCC and other community meeting needs including Orange County Schools along with the Town of Hillsborough. That project, although designed is on hold due primarily to the associated cost of upgrading restrooms to meet code requirements for large public gatherings. B. That project could be shifted to the Whitted Building former library space and accommodate many of the previous needs for public meeting space along with most of the activities imagined by the non - profit cultural center group. (We have discussed with the group's organizers this possibility and found them acceptable to pursuing the concept.) C. Shifting the public meeting facility (and associated expense) to the Whitted Building allows basic enhancements to move forward that would (with additional contributions by the nonprofit for up fits) allow multiple private and public uses of the former library space. The County's Tourism Staff prepared a brief report (Attachment 2) which outlines some uses /users and highlights how they might be involved in marketing the space. (The Town and County must still address the parking issues if any of the proposed uses outlined above are to move forward.) D. If this project moves forward, the County would have options it could choose associated with the Annex Building next to the Link Center. That building now houses only the Board of Elections (4 employees and equipment storage). Those functions could be relocated to former space in the Link Center planned for the meeting room. The area has ample space to accommodate all of their needs. Modifications to the building would be less expensive than the meeting space. Restrooms would not require the same upgrades as the meeting space option. E. If we proceed as proposed in D above, we could decide on how to deal with the Annex Building. (1) An option may be to deconstruct the building. If done, this option would assist in addressing parking issues with the Town in two manners. One the reduction in building floor space would reduce parking demand (town rules are based on building square footage). The 1968 building has one usable floor (main), some attic storage and a lower level that sits below flood level. Removing the building reduces parking demand by 1 space per each 300 SF of building space and allows the area of the building to be expanded parking for the courts and Link Center. (2) A second option could be to move some other governmental function to that space (state or county). This option further negatively impacts parking issues downtown. (3). Third, we can continue the current activities as they are. However, the building space far exceeds the needs of the Board of Elections with utility and maintenance costs being duplicative of vacant space in the Link Center. SUMMARY It is difficult to look out into the future with any degree of certainty (especially, as the role of county government is in continuous change). We make effort to extract as many uses out of county buildings and facilities as possible (county needs as well as others). The Whitted Building appears to have a never ending lifecycle. Existing County uses and investments ensure the facility will continue to be a governmental asset for many years to come. Someday, it may move to other non - governmental use and ownership; that does not appear to be in the near future. However, if the County Commission sees merit in the proposals discussed within this report we can move that process forward. Finally, it is recognized the Town of Hillsborough's parking requirements will play a key role to whatever future uses are employed at the Whitted Building. If the Town and County can find agreeable methods to address that issue, the future of Whitted' s use to support cultural and community related activities will be brightened. Otherwise, those options remain elusive. ATTACHMENTS 1. Orange County Cultural Center — Strategic Business Plan 2. Visitor Bureau Input: Whited Building 3. Whitted Building Library Space Plan 4. Arts Commission Sprinkler and Structure Reimbursement Proposal 5. Notes From County Commissioners Building Walk Through (1- 23 -12) ORANGE COUNTY CULTURAL CENTER Whitted Building, 300 West Tryon Street, Hillsborough, NC 27278 STRATEGIC BUSINESS PLAN 09/08/2011 EXECUTIVESUMMARY ....................................................................................... ............................... 4 VALUES/ MISSION / VISION ............................................................................... ............................... 6 VALUES................................................................................................................ ............................... 6 MISSION............................................................................................................... ............................... 6 VISION.................................................................................................................. ............................... 6 PRODUCTS& SERVICES ...................................................................................... ............................... 9 MARKETRESEARCH ............................................................................................. .............................10 INDUSTRYANALYSIS ...................................................................................... .............................10 IndustryOverview ........................................................................................... ............................... 10 Challenges& Opportunities .............................................................................. .............................11 BUSINESS -TO- BUSINESS CUSTOMER ANALYSIS .................................... ............................... 12 Orange County Cultural Center Confidential Page 1 of 30 Strategic Business Plan (v.1.0) 9/8/2011 Member Organization Usage Needs ............................................................... ............................... 12 Other Art / Cultural Organizations .................................................................. ............................... 12 PotentialFuture Users ........................................................................................ .............................12 Funders............................................................................................................ ............................... 13 COMPETITIVE ANALYSIS ................................................................................ .............................13 General Overview of the Competitive Environment ....................................... ............................... 13 Competitorsthat offer Space ............................................................................. .............................14 Competitorsfor Fundraising ............................................................................ ............................... 18 MARKETING AND SALES PLAN ....................................................................... ............................... 18 MARKETING STRATEGY ................................................................................. .............................18 BrandStatement ............................................................................................... ............................... 18 MarketingMessage ............................................................................................ .............................18 Strategy.............................................................................................................. .............................19 MARKETING COMMUNICATIONS PLAN ...................................................... .............................19 Marketing Communications Vehicles ............................................................. ............................... 19 SALESPLAN ........................................................................................................ .............................21 OPERATIONS, PERSONNEL, AND MANAGEMENT ......................................... .............................21 MANAGEMENT................................................................................................ ............................... 21 PERSONNELPLANNING ................................................................................. ............................... 22 Part-time Coordinator ...................................................................................... ............................... 22 Part-time Custodian ......................................................................................... ............................... 23 RISKMANAGEMENT ...................................................................................... ............................... 24 HOURSOF OPERATION .................................................................................. ............................... 24 REGULATIONS, COMPLIANCE & REPORTING .......................................... ............................... 24 LICENSES, PERMITS, REGULATIONS & TAXES ........................................ ............................... 24 Orange County Cultural Center Confidential Page 2 of 30 Strategic Business Plan (v.1.0) 9/8/2011 COMPUTERS, BUSINESS & FINANCIAL SYSTEMS ................................... ............................... 25 BILLING, CREDIT TERMS & COLLECTION PROCESS .............................. ............................... 25 PROCESSES....................................................................................................... ............................... 25 Artist Studio / Office Rentals :......................................................................... ............................... 25 Classroom / Auditorium / Gallery Rentals :..................................................... ............................... 25 Access to Professionals / Counsel ......................................................................... ............................... 26 STARTUP PLAN ................................................................................................ ............................... 26 Phase1 ............................................................................................................. ............................... 26 FINANCIALS: YEARS 1 - 3 ..................................................................................... .............................28 Orange County Cultural Center Confidential Page 3 of 30 Strategic Business Plan (v.1.0) 9/8/2011 EXECUTIVE SUMMARY For years, many have been dreaming of creating a Cultural Center to serve the central and northern part of Orange County: a home for cultural events, plays, concerts, film, arts programming and classes for children and adults, community events, literary readings, and a gallery. There is currently no existing facility nearby Hillsborough that is large enough and still affordable for groups who have struggled to find space to host these types of events and classes. The Orange County Cultural Center (OCCC) will successfully fill this void by providing a conveniently located facility, dedicated for cultural events. The proposed space will be walkable to historic downtown Hillsborough, with enough flexibility to allow for performance as well as conference space, providing additional rooms for classes, art- related events, and other cultural offerings. The Center will benefit the economic vitality of the region by not only providing the open space and infrastructure to foster artistic and historic enrichment, collaboration, and education, but also by serving as a cultural incubator to spark innovation. The OCCC was formed by a core group of artistic, cultural, and educational organizations that recognized the need and banded together to create a new organization to address the lack of accessible and affordable space to fulfill the cultural needs of the community. Representatives from the Orange Community Players, the Hillsborough Arts Council, the Historic Hillsborough Commission (the Burwell School), the Historical Foundation of Hillsborough and Orange County (the Orange County Historical Museum), the Chapel Hill Orange County Visitor's Bureau, the Orange County Artist Guild, the Orange County Arts Commission, the Alliance for Historic Hillsborough, and the Orange County School System are all part of this `dream team' and are committed to making the OCCC a huge success! The OCCC seeks to lease 12,000 square feet of the historic Whitted building, the first floor of Building A, to provide long- and short-term rental space for cultural organizations that reside in Hillsborough and the central and northern portions of Orange County, and a performance space for both local and non -local cultural entertainment. The Center will offer yearly rentals of 7 unique studio /office spaces for creative professionals such as visual artists, teachers, musicians, and writers, and /or other cultural organizations. Two large classroom rentals will be available to provide hourly rental space for mid -sized events, including after - school and adult programming, black -box theatre, rehearsal space, and off -site conferences and business meetings. An auditorium that comfortably accommodates 250 to 300 seated people (200 at tables) will be available for hosting plays, lectures, dances, reunions, banquets, conferences, and other large gatherings. The OCCC will boast an on -site coffee shop and event bar, and offer gallery, exhibition and storage rental spaces as well. The OCCC Board will create interest in the Center and continuously develop community awareness via a variety of marketing communications tools. An ongoing publicity campaign will be conducted by developing relationships with news media representatives, writers and editors of local newspapers, arts magazines, and industry publications. Additionally, Board members will actively build local Orange County Cultural Center Confidential Page 4 of 30 Strategic Business Plan (v.1.0) 9/8/2011 relationships by meeting with key community and government leaders and attending community group meetings to create an audience for events and to connect with potential fenders. To further support the campaign, press releases will be submitted periodically to publicize newsworthy events, flyers and monthly newsletters will be distributed, and a fresh and exciting presence will be maintained through a dedicated website and social media outlets. The Center will focus on leveraging the influence of the OCCC Board of Directors and member organizations to network and publicize its offerings and activities. The Center will be overseen by the OCCC Board of Directors and initially managed by the Chair, John Delconte. John will manage the organizational finances; move -in, purchases and space upgrades; and coordinate marketing, sales, and community networking with other Board Members. He will form a hiring committee responsible for interviewing, hiring, and managing both a part-time Coordinator and part-time Custodian. The part-time Coordinator will be initially hired to work approximately 10 hours per week and will be responsible for day -to -day operation of the Center including space sublets, bookings, and coordination. He /she will maintain the OCCC website and social media accounts, handle accounts payable and receivable, and write grants to support the Center. The position will eventually become full -time when the center is at full capacity. A part-time Custodian will be hired to initially work approximately 10 hours per week and will report to the Coordinator. The Custodian will be responsible for day -to -day upkeep of the Center, including weekly cleaning of rented studio space and common areas and post -event cleanup for classrooms and the auditorium. Of the existing $37,000 in startup funds approximately $15,000 will be used for a fundraising feasibility study and $3,800 will be allotted for combined legal, financial, and architectural fees. $6,200 will be used for the initial purchases of office equipment, seating, tables, and stage. The remaining $12,000 will cover the majority of the Coordinator and Custodial expenses for the first year. Rentals will gross an estimated $42,600, $57,900, and $81,900 for years 1 through 3, respectively. Expenses will run $57,600, $78,500, and $107,296 for years 1 through 3, respectively. Negative results from operations will be offset with grants and fundraising over the 3 years, thus enabling the Center to end each year with a positive net asset position. During Year 2, the Center will launch a capital campaign to cover the large -scale build out of a state - of -the art theater, restroom upgrades, and to establish an endowment. The Board expects this campaign to continue over a 6- to 8 -month time period and close during Year 3, at which point we will conduct the upgrades. However, since the architectural space plan is in process, and the cost of the upgrade has not been determined, the amount of capital that needs to be raised is a rough estimate ($1,000,000). The Board of the OCCC seeks to gain approval of occupancy by October 2011, and to begin operations in December 2011. The Board anticipates that Orange County and the Town of Hillsborough will agree that the OCCC will serve as a cultural landmark, drawing community members as well as Orange County Cultural Center Confidential Page 5 of 30 Strategic Business Plan (v.1.0) 9/8/2011 visitors from afar, while serving as a home for our cultural wealth and an incubator for future creative growth. VALUES / MISSION / VISION VALUES • Build a thriving cultural community: Bring together artists, gallery owners, visual & performing arts organizations, educators, philanthropists, writers, business owners, community members, and visitors to share in cultural activities that raise public awareness and appreciation. Create teamwork through community collaborations and partnerships. • Nurture artistic and educational creativity: Provide and manage an inviting, supportive, and inspiring venue to host quality creative artistic and educational offerings. Continuously pursue and expand the availability of creative opportunities. Strive to make learning fun, interesting, and increase curiosity. • Preserve historic architecture: Invest in and maintain the auditorium and office spaces within the historic Whitted building, which once housed the Hillsborough High School and is owned by Orange County. Share and grow interest in the rich history of Hillsborough and Orange County by maintaining the structure as a cultural and educational destination. • Promote professionalism and financial stability; Continuously provide high quality service to visitors and the local community. Offer enthusiasm and commitment to clients, be respectful and flexible, and promote ethical practices. Develop good financial habits and develop and implement strong financial, regulatory, and supervisory policies in the interest of financial stability. MISSION The mission of the Orange County Cultural Center (OCCC) is to promote the public understanding and appreciation of the creative arts and cultural history of Orange County and to stimulate the interest and participation of members and the community by providing affordable space for exhibitions, education, and professional endeavors. VISION The OCCC hopes to establish a cultural arts center on the first floor in Building A of the Whiffed Building in the center of Hillsborough, NC. The Whiffed Building is located within the boundaries of the Hillsborough Historic District and is listed on the National Register of Historic Places. It most recently housed the main branch of the Orange County library and also served as the Hillsborough High School. The OCCC will fill a void by providing a conveniently located facility dedicated for cultural events in central and northern Orange County, where available space for artistic events is very limited. This space is walkable to the historic downtown, with enough flexibility to allow for performance as well as conference space, providing additional rooms for classes, art- related events, and other cultural offerings. The Cultural Center will serve as a place of creative discovery, exploration, and enlightenment that bridges both cultural and economic boundaries. The Center will benefit the economic vitality of the Orange County Cultural Center Confidential Page 6 of 30 Strategic Business Plan (v.1.0) 9/8/2011 region by not only providing the open space and infrastructure to foster artistic and historic enrichment, collaboration, and education, but also by serving as a cultural incubator to spark innovation. The Center is currently attracting the attention of stakeholders and finders, and has amassed a startup fund through individual donations and grants issued by the Hillsborough Tourism Board. We continue to seek out additional funding to round out our needs to cover the first 6 -12 months of expenses. The Cultural Center will be developed in three phases: Phase I mmonths I -12) Hire a part-time coordinator, who will book the spaces in the building; maintain the website, newsletter, and social media outlets; manage the office and books; and perform general administration. Hire a part-time custodian, who will conduct regularly scheduled upkeep of full -time rental spaces and other spaces on an as- needed basis. Sublet the 6 of the 7 existing studio /office spaces to member organizations and outside creative groups (with priority to member organizations). Uses to include: • Studio space for music teachers, visual artists, writers • Incubator offices • Administration Rent out conference /creative spaces to member organizations and outside creative groups (with priority to member organizations) with a goal of 15 hrs /mo. Uses to include: • After - school programs • Dance, acting, movement classes • Small conferences / meetings • Black -box theatre Begin booking the auditorium space (as is) to member organizations and outside creative groups (with priority to member organizations) with a goal of 4 events /mo. Uses to include: • Plays, fundraisers, lectures, movies, musical acts • Large workshops • Large art classes • Large gallery exhibitions Orange County Cultural Center Confidential Page 7 of 30 Strategic Business Plan (v.1.0) 9/8/2011 Dances • Reunions Conferences Weddings Rent out the cafe space to a local vendor on an annual basis. Establish monthly rentals for the art gallery, conference room events, and storage areas. Generate interest and commitment from bar rental vendor to offer service during special events. Develop a space plan and determine costs for a complete upgrade of the Center. Phase 2 (months 12 to 24) Launch a capital campaign to cover: • Unfitting costs for restroom upgrades. • Build out for a fully fimctional theatre (sound, stage, lighting, seating, concessions, room dividers, flooring, ceiling, etc) to allow for audiences of 250 to 300 persons seated in rows, or 200 seated around tables. $100,000 endowment. Increase Coordinator hours to 30 /week and Custodian hours to 20 /week. Sublet the 1 remaining studio /office space and renew leases for the occupied 6 rental spaces. Increase classroom bookings to 30 hours per month and auditorium bookings to 6 events per month. Phase 3 (months 24 to 361 Increase Coordinator to full time — added responsibilities include: fundraising and grant writing. Complete capital campaign (raising $1,000,000). Contract out and oversee aforementioned upgrades and establish the endowment. Book classroom and auditorium spaces with a goal of 60 hours /mo and 10 events /mo, respectively. Expand efforts to collaborate with other cultural, civic, and educational organizations in bringing arts and culture to our greater community. Orange County Cultural Center Confidential Page x of 3u Strategic Business Plan (v.1.0) 9/8/2011 Create new partnerships with private and public finders for ongoing operational support (ie, Duke, LNC, LNC Hospitals, Durham Regional, Sports Endeavors, PHE, other local businesses and individuals). Ongoing / Future Design and offer in -house creative programming to increase earned income. Partner with fenders or existing groups to ultimately purchase the building so that further improvements do not become `sunk costs'. PRODUCTS & SERVICES • Manage room sublets and coordinate booking of spaces to other cultural organizations and individual artists that reside in Hillsborough and Orange County; 1) 7 studio %ice spaces — (minimum) yearly rentals for: • Visual artists • Music teachers • Writers • Incubator offices 2) 2 large classrooms /creative%onference spaces — for mid -sized events (max 80 persons) • After - school programs for all types of art, including dance, visual, theatre, sculpture, etc. • Adult programs for all types of art, including dance, visual, theatre, sculpture, etc. • Small conferences or off -site business meetings • Dedicated rehearsal space • Black -box theatre 3) 1 lame multi -use flexible auditorium/theatre — for larger events (max 250 -300 persons) • Workshops and classes • Plays, musicals, theatrical performances • Lectures and large conferences • Fundraisers Orange County Cultural Center Confidential Page 9 of 30 Strategic Business Plan (v.1.0) 9/8/2011 • Reunions, weddings, dances, and other social events • Artistic and historic exhibitions 4) Miscellaneous rental spaces • Cafe — outside vendor to offer beverages and snacks • Events Bar — to be rented out during larger special events to provide alcoholic beverages and light fare • Art gallery • Storage areas • Provide superior operational, administrative and custodial service; • Provide avenues to exhibit and sell the works of two- and three - dimensional art through a variety of juried and non juried exhibitions; • Provide housing for historical exhibits; • Develop OCCC - dedicated artistic programs in the future to provide additional income; • Generate job opportunities for Orange County residents by providing a first -class space for incubating the cultural, artistic, and historical visions of county residents and organizations. MARKET RESEARCH INDUSTRY ANALYSIS Industry Overview There is a wealth of cultural capital in our community. More than 1,400 artists of all kinds are listed in the Orange County Arts Commission's database. We have painters, photographers, filmmakers, poets, writers, musicians, dancers, and fine craft artists. Hillsborough was named the best literary town in the south this year by one recent publication (gardenandgun.com). As well, our community is home to many individuals and organizations that are making valuable efforts to archive our cultural history, protect our cultural artifacts, sites and buildings, and to preserve all of these precious resources for the benefit of the citizenry. The arts /culture industry is dynamic in Orange and Durham Counties and growing as evidenced by the ongoing success of venues like the Carrboro ArtsCenter, Playmakers Repertory Company, Deep Dish Theater, the Durham Performing Arts Center (DPAC), Golden Belt, and the recent emergence of small art galleries. New art and performance venues have also come online in the nearby Chatham County communities of Saxapahaw and Pittsboro. Orange County Cultural Center Confidential Page 10 of 30 Strategic Business Plan (v.1.0) 9/8/2011 Hillsborough's thriving art scene has emerged within the last 10 years: the Hillsborough Arts Council's Last Friday event attracts thousands of patrons each month during the spring and summer, its winter Parlor Concerts sell out, and its giant puppet parades inspire both children and adults. The arts have helped to spark a renaissance in downtown Hillsborough, which has led to a strong merchant and restaurant presence. However, there is a perennial need in central and northern Orange County for space and venue for the expression of the arts and humanities. Performance, rehearsal, gallery, and studio spaces that are specialized and affordable are very difficult to find, as are office, meeting, and teaching facilities. Locating multiple entities, with shared focuses on art, culture, history, and heritage, all in one physical location in the heart of a community (Hillsborough), would encourage a dynamic exchange of inspiration, ideas, and work, as well as an opportunity to share underpinning resources. The energy feeds back into the community, encouraging creative individuals and businesses to make this their community as well. Arts and historical attractions serve as a cornerstone for Orange County tourism. The Chapel Hill /Orange County Visitors Bureau reported that 3 of the top 10 Orange County Attractions in 2009 were arts related (by reported attendance). Tourism in Orange County provides sales to local businesses, tax dollars to municipal governments and employment for residents. According to the Orange County Office of Economic Development, total visitor spending in the county was $144.07 million in Orange County during 2010. Challenges & Opportunities The Cultural Center will be operating in a climate of economic uncertainly that is outside of its control. Personal income and leisure time drive demand for cultural and artistic programs. As a discretionary spending item, attending performances depends on personal income and competes for the consumer dollar with other entertainment and pastimes. Additionally, the Center will partially depend on third -party sources for investment and supplemental funding, as revenue won't always cover expenses. Corporate and individual sponsorships, foundation and government grants, and gifts will help underwrite operations. This support will also hinge on the health of the economy; changes in corporate profits, the stock market, and government budgets will influence financial support from private and public sources. However, a variety of opportunities are being pursued locally to develop new audiences. The Chapel Hill/Orange County Visitors Bureau is currently working in numerous ways to increase visitor traffic. It has added a Smartphone plan to their media schedule that will offer listings of Chapel Hill /Orange County restaurants, events and shopping in the area. Smartphone usage has increased significantly over the last 5 years and travel applications are some of the most used applications in the market. The Visitors Bureau is also teaming up with the Greater Raleigh and Durham County Visitors Bureaus to promote local art throughout the Triangle. Arts in the Triangle will be the official arts site for visitors in North Carolinas Research Triangle Region. Visitors will be able to view upcoming events in visual and performing arts and plan a triangle arts getaway by downloading itineraries. Visitors come to Orange County looking for authenticity, for the character of a place, and for unique attractions. The county is a blossoming cultural destination for those from near and far. A vibrant Orange County Cultural Center Confidential Page 11 of 30 Strategic Business Plan (v.1.0) 9/8/2011 cultural center would serve as yet another magnet for visitors, whether their visits are for leisure or for business. BUSINESS -TO- BUSINESS CUSTOMER ANALYSIS Member Organization Usage Needs Orange Community Players — theatre, classroom, and dedicated rehearsal space Hillsborough Arts Council — art classes, movement and drama programming, musical performances, after - school and summer programming Historic Hillsborough Commission✓Burwell School — historical programming, gallery exhibits, and fundraising Orange County Historical Museum/Historic Foundation of Hillsborough — historical programming, gallery exhibits, fundraising events, off -site board/committee meetings Orange County Artist Guild — gallery exhibits Orange County Arts Commission — arts programming Orange County School System — theatre, classroom and gallery exhibits for and by kids Other Art / Cultural Organizations Hillsborough Actors Theatre Company 7— has hosted an annual Christmas Carol for the past 9 years, featuring renowned authors Michael Malone and Allan Gurganus. They hope to host their 10th anniversary in the Cultural Center. The Purple Crow Bookstore — often has authors in for "readings" when new books are published. A recent reading was held outdoors at the new Famer's Market Pavilion because it drew many more people than the small bookstore could house. Handmade Parade — the auditorium floor would be an ideal space for producing the huge 20- to 30 -foot puppets for the handmade parade as well our dedicated storage areas for works in progress. Potential Future Users Hillsborough Radio Station — local microstation is looking for a broadcast booth and 2 studios. Symphony Orchestra — gives concerts at Cameron Park in the summer. They could offer a winter concert / series in the auditorium. Local music teachers — could utilize office space for one -on -one lessons, the classroom areas for larger groups and the large theatre space for their students to perform recitals. Gallery exhibition space — while there are wonderful venues in town for the display of art in commercial galleries, there are no places for amateurs to present their wares. The auditorium space could be a great place for mounting "juried" shows, where anyone could enter. We have resident in Hillsborough a premier landscape painter, John Beerman (who has paintings hanging in MOMA in New York City). He currently gives watercolor classes in a converted gas station. While he may not want to change his space for classes, he would be an excellent judge of a " juried" show (and has said Orange County Cultural Center Confidential Page 12 of 30 Strategic Business Plan (v.1.0) 9/8/2011 he would be interested in helping out in such a way). Such shows would help the local art- galleries as well by bringing in more people interested in the visual arts. Old 35mm Movie Buffs — currently old movies are shown in the Masonic Temple. Potentially more people would attend showings if the arrangements were a bit more comfortable than their rather cramped quarters. Music Groups — there are numerous music groups in town from jazz orchestras to bluegrass groups who would be eager to play for dances and concerts. Lecture series — we have many interesting scholars and collectors in town. It would be possible to run an interesting local lecture series to remove the need to travel to Chapel Hill or Durham for an "intellectual community ". Funders The OCCC will be seeking as much funding from program and sub - rentals as possible; however, it is likely, in order to keep costs affordable to the cultural organizations, ongoing support will be needed. Individual support will come from local Hillsborough community members including our great local authors, who have led fundraising efforts and will continue to do so. We are planning to engage a professional fundraiser to conduct a feasibility study, assist us in targeting fenders, and offer advice on communication strategies. There are a host of local businesses, institutions and foundations that we plan to, target such as PHE Inc, Sports Endeavors, Duke University, UNC, and the Kirby Foundation. We expect that fundraising will also build on itself by bringing in more participants as well as enthusiasm for a shared effort. COMPETITIVE ANALYSIS General Overview of the Competitive Environment For years, many have been dreaming of creating a Cultural Center to serve the central and northern part of Orange County: a home for cultural events, a place to host plays, concerts, film, arts programming and classes for children and adults, community events, literary readings, and a gallery. The Orange County Cultural Center was formed in response to this need. The facility is needed to provide affordable performance space, gallery space, classrooms, studios, and arts programming near the center of downtown Hillsborough. The need has become apparent after several groups in this part of the county have struggled to find space to host events and classes. Groups like the Hillsborough Arts Council, the Orange County Historical Museum, and the Burwell School Historic Site regularly host events that could sell more tickets in a larger space. There is no fully functional theater nearby Hillsborough. Arts and cultural organizations need the space to expand their offerings for classes and after - school programs. Local artists desire studio space, and local educational institutions such as Orange County Schools would make use of the space for their arts and cultural classes. This project has the chance to benefit everyone. Orange County Cultural Center Confidential Page 13 of 30 Strategic Business Plan (v.1.0) 9/8/2011 Competitors that offer Space The Big Barn Convention Center 388 Ja -Max Drive, Daniel Boone Village, Hillsborough, NC 27278, 919 - 732 -2361 (2 miles / 5 minutes from the OCCC) • The Big Barn is a 9000 - square -feet convention center with up to a 350- person seating capacity. It offers a large stage, lobby & bar, fireplace, full kitchen, tables & chairs, alcohol is permitted, and catering is available on request. • Rental rates are Mon through Wed full day - $800, 1/2 day $500 and Thurs through Sun full day - $1000, with a separate $100 clean up deposit. • The space is marketed as a rustic center ideal for meetings, parties, weddings, receptions and family reunions. They do not have a dedicated website, but can be found online through other websites like theshopsatdanielboone.com and visitchapelhill.org. • This venue only offers the one rental space. They do not tend to attract artistic clientele as their space has more of a `dark outdated feel'. The Arts Center of Carrboro 300 -G East Main Street, Carrboro, NC 27510, 919 - 929 -2787 (13 miles / 25 minutes from the OCCC) jlqp://www.artscenterlive.org/ The Arts Center of Carrboro is a fully functioning artistic and creative center. They have their own in -house programs and also offer rental space as detailed below: • Earl and Rhoda Wynn Theater: a large theater that is approximately 6000 square feet and can accommodate from 250 to 500 persons depending on configuration. It features a 32'x28' thrust stage, a triangular 40'x30' dance floor, full P.A., and permanently mounted 12x12' film screen. • West End Theater: is a multipurpose room with 2400 square feet, a 15'x15' stage and a small attached kitchen that accommodates 75 to 100 persons depending on configuration. • Dance Studio: is a 20'x30' space that can accommodate up to 24 persons. It has a large full wall mirror, stereo system and wooden floors. • Miscellaneous Rooms /Capacity • Gallery - 2000 square feet, 125 persons • Studios 2, 5, 6 - 15'x30' to 20'x35', 10 -18 persons • Jane Filer Studio - 30'x 18', 24 persons • Rates for all rentals are $90 per hour / $70 per hour for non - profits and schools. Discounted rates are available for lengthy or long -term rentals. Sound and light technicians, bartenders and other services are available at an additional charge. They provide a House Manager for the duration of each event, will recommend a caterer, provide bands/DJs of all genres, and offer beer & wine selections in a bar & concession area. Patrons are also welcome to bring in their own food, beer and wine. Orange County Cultural Center Confidential Page 14 of 30 Strategic Business Plan (v.1.0) 9/8/2011 The Arts Center's markets their theater, practice spaces, dance and art studios, and galleries for all types of special events including wedding receptions, family reunions, holiday parties, birthday parties, bat mitzvahs, quinceaneras, memorial services, business meetings, seminars, rehearsals, and performances. The Arts Center is a viable competitor but logistically they are too far away and service mainly Carrboro and Chapel Hill. Carrboro Century Center 100 North Greensboro Street, Carrboro, NC, 919 -918 -7365 (13 miles / 25 minutes from the OCCC) http://www.carrboro.com/centMcenter.html The Carrboro Century Center has five furnished rooms and a fully equipped kitchen available for rental as described below: • Century Hall: is approximately 4236 sq ft. and can accommodate 200 to 545 persons according to configuration. The stage is 21'x18' and they require a 3 -hour minimum rental. Standard Fee is $165 weekday /$276 weekend, Public Fee (events free to the public) is $87 weekday /$13 8 weekend. • Activity Rooms (4 avails the rooms range from 252 -270 sq. ft. with a max capacity of 6 -18 persons depending on set up. Rooms 2 & 3 can be combined to double the capacity. There is a required 2 -hour minimum rental. Standard Fee is $47, Public Fee is $29 • Kitchen: 200 sq ft., 1 hr min rental, Standard Fee is $32, Public Fee is $19 AN & Kitchen equipment, site license fees charged separately The Century Center hosts community events sponsored by a variety of area organizations such as Triangle Swing Dance Society, and the Triangle Country Dancers. They offer recreational classes and workshops for adults and youth, town sponsored events and programs, art exhibits, dances, dinners and reunions, business meetings, private weddings, parties, receptions, and bar mitzvahs. The Carrboro Century Center is a viable competitor, but too far away to accommodate Northern and Mid Orange County patrons. Common Ground Theater 4815B Hillsborough Road, Durham, NC, 919 - 698 -3870 (9 miles / 13 minutes from the OCCC) • http: / /cgtheatre.com/ • The Common Ground Theater is a 2300 - square -foot building that includes 960 square -feet of performance space, flexible seating for 55 +, a lobby, box office and dressing room. • Performance Rental Rates per Rental Period (as described below): Mon, Tues, Wed — $100.00, Thurs and Sun — $125.00, Fri and Sat — $150.00. There is a minimum weekly rental fee. of $550 for theatrical runs that are longer than one week, monthly rates are negotiable. • Rental Periods: Monday — Saturday — 6pm to 11:30pm, Sundays — 12pm to 5pm, other times are negotiable upon availability. Orange County Cultural Center Confidential Page 15 of 30 Strategic Business Plan (v.1.0) 9/8/2011 • Rehearsal /Class Rental Rates: Mon — Thurs & Suns — $45.00 per day or $55.00 with lights, Fri & Sat — negotiable, monthly rates are negotiable. Session lengths and times are determined based upon availability. • The Common Ground is mainly marketed as a theater (rehearsals, auditions and performances) and local music venue, although they do host both physical and creative classes. • This venue is a much smaller than the OCCC and offers only a theater space with no additional classroom or studio options. Durham Performing Arts Center (DPAC) The American Tobacco District, 123 Vivian Street, Durham, NC 27701, 919 - 688 -3722 (15 miles / 21 minutes from the OCCC) • http: / /dpacnc.com • DPAC is a full service facility that offers numerous rentals spaces as detailed below: o Performance Theatre: a contemporary space with over 2,700 seats distributed on three levels (1,400 on the orchestra floor, 600 in the Grand Tier, and 700 in the Balcony). Pricing starts at $7,500 for the full 2,700 seats and $6,000 for reduced 2,000 -seat configuration (plus staffing, clean-up, security, sound- lights and other expenses). o BlueCross B1ueShield of NC Atrium: a three -story glass - walled lobby that offers over 15,000 square feet of event space for gatherings up to 1,000 guests. Pricing starts at $4,500 (plus staffing, security, clean-up and other expenses). • Mildred and Dillard Teer Stage: a 6,000 - square -foot stage that doubles as a meeting, reception or party space for groups of up to 500 guests. Pricing starts at $3,000 (plus staffing, security, clean-up and other expenses). • Capitol Broadcasting Plaza: an outdoor space that can accommodate up to 1,500 guests for small festivals, outdoor performances, and pre -show gatherings. Pricing starts at $1,500 (plus staffing, security, clean-up and other expenses). • President's Club Lounize: the only "closed- door" meeting space at DPAC. Used exclusively for VIP clientele/ Patrons/ guests on show nights or for business meetings or gatherings on off nights. Pricing starts at $750 (plus staffing, security, clean-up and other expenses). • The Durham Performing Arts Center markets itself as a state -of- the -art, full- service facility for receptions, meetings, conferences, new product launches, or other special events. They assist with catering services, audio /visual equipment, room setup designs, special - themed decorations and have access to specially qualified vendors that can provide tents, flowers, ice sculptures, and superstar entertainment. • DPAC is a great venue but significantly more expensive than the OCCC rentals, and they give priority to in -house events / presentations. Orange County Cultural Center Confidential Page 16 ot30 Strategic Business Plan (v.1.0) 9/8/2011 Golden Belt 807 East Main Street, Durham, NC 27701, 919 - 967 -7700 (16 miles / 23 minutes from the OCCC) • http: / /www.goldenbeltarts.com • The Golden Belt is a repurposed textile manufacturing `campus' that offers art gallery and artist studios rentals as follows: • The LabourLove Gallery: an 1800 sq ft privately managed space that sells original artwork, home decor and merchandise while also providing services for art rental, children's art lessons, and art selection. Artists can rent gallery space in various ways: 3' w x 8' h Wall space — $89 /month, shelf space — 3 shelves 30" long totaling 7.5' linear feet of display space — $89 /month, Clothing Rack Space — 3 linear ft — $49 /month. Artists have the option to apply for a six -month or twelve- month lease. Artists keep 90% of the retail sale from all items. LabourLove will use the other 10% to cover credit card processing and basic business expenses related to gallery operations including accounting and marketing costs. • Artist Studios: 35 individual artist studios feature oversized, industrial sliding doors with inset glass window, ample natural light, electrical outlets, concrete floors, and 14 -foot ceilings. Sizes range from 168 -648 square feet and larger spaces can be shared. Artists have access to their space 24/7 and may sell work out of their spaces. Studios run from $275 - $800 per month and all utilities are included. • The Golden Belt markets themselves as a venue with a sustainable design and a historic restoration that embraces the funky industrial aesthetic to forge a unique urban environment where creative people live, work and play. • The Golden Belt is a larger venue that encompasses retail stores and apartments and their artist rental space is significantly higher in price than the OCCC. The Depot 246 S Nash St, Hillsborough, NC 27278, 919 - 643 -3768 (1 mile / 2 minutes from the OCCC) • http: //hillsboroughdepot.comJ • The Depot is a 3500- square -foot candy & ice cream store with a small performance area that offers light fare, beer & wine in the evening. • The rental rate is $20 per hour and you must use them for food & beverage. • The Depot is basically a small live music venue with shows offered mainly on Fri & Sat eves, with the occasional open -mic night. • This venue is for small performance groups or art showings only. There is no changing or practice area and has an estimated 50 -100 person maximum capacity. There are also various high schools, civic spaces , hotels, and other commercial venues that rent space, but they don't have an artistic atmosphere, are generally just large one room auditorium -type spaces where you can only arrange one -time rentals with no available rehearsal spaces, storage areas, etc. Orange County Cultural Center Confidential Page 17 of 30 Strategic Business Plan (v.1.0) 9/8/2011 Competitors for Fundraising We recognize that the OCCC is a new group that will fundraise to the same community as other artistic and cultural non - profit venues. However, the OCCC serves a distinct role to that of the member and other community organizations as `we are the building coordinator, and everyone else provides the programming'. By providing space for other arts organizations we will be seeking operational support and will not be competing for art program dollars. This allows for continuity within the organizational brands, and strengthens grant - winning opportunities by running new programs through well - regarded organizations that are established with long track records. In essence, we are providing the space in which all the other local cultural organizations and artists can effectively present their work to the public. That said, our operational fundraising will be on par with the smaller organizations in town. MARKETING AND SALES PLAN MARKETING STRATEGY Brand Statement The OCCC is a trusted, local, community- oriented organization that fosters local creativity and partnership by providing a home for affordable, high - quality art, history, and cultural events. We are the only local facility that can provide auditorium and classroom space for performances and classes that is affordable and accessible to our community. Marketing Message Is your artistic /cultural organization seeking affordable rental space close to home? Are you settling for venues that are too environmentally sterile or have limited offerings that don't encompass all of your needs like a large theater, ample storage, rehearsal space, or attractive viewing areas? The OCCC has repurposed what was once the central Orange County library in the historic Whitted Building in downtown Hillsborough into a 12,000 sq ft. artistic hub where all are welcome. Eight local artistic, cultural, and educational organizations formed the OCCC to create this accessible and affordable creative space. The Center is an attractive, professionally managed venue that boasts a large theater & auditorium, classrooms, and artist studios /offices. It serves as a home for cultural events, plays, social gatherings, concerts, arts programming and classes, a cafe, and an art gallery. It draws local community members, families, and visitors alike to enjoy and support local creative offerings. After all of the hard work that you've invested in developing your unique program, we understand that you desire and deserve an inviting space to host your spectacular event. Call our professional OCCC Coordinator today at 919 - 643 -2500 and let us serve as your host for creative programming. Orange County Cultural Center Confidential Page 18 of ju Strategic Business Plan (v.1.0) 9/8/2011 Strategy Leverage the influence of the OCCC Board of Directors and the OCCC member organizations to network and publicize the center, our offerings and activities. Maintain a fresh and exciting presence on our website and in social media. MARKETING COMMUNICATIONS PLAN Marketing Communications Vehicles Public Relations 1) The OCCC will conduct an ongoing publicity campaign by developing relationships with news media representatives, writers & editors of local newspapers, arts magazines, and industry publications, encouraging them to write articles focusing on the Center. We will also write and submit press releases publicizing newsworthy program interests and events, public interest and industry stories, and upcoming community events, and will actively use social media. Our publicity will be conducted in phases: a) Create public awareness by letting the community know that we have officially signed a deal with the county, what we will offer, who is involved. b) Publish an interim article describing the build -out and an estimated opening date. c) Publish a grand opening article including quotes from organizing groups and how they are going to utilize the space, inviting community members to come and visit. d) Personally invite media contacts to special events hosted at the Center. e) Submit monthly articles describing activities for the upcoming month and future `special events'. Additionally, write short `personal interest stories' focusing on prior month's events and their success. Potential Venues & Contacts: Erin Wiltgen — News of Orange County, e.wilt en ,newsoforan eg_com Dan Way — Chapel Hill Herald, DWay@heraldsun.com Mark Schultz — News & Observer, Durham Section, mschultz&newsobserver.com Our State Magazine, editorialkourstate.com Dan Shannon — Chapel Hill Magazine, danshannon (a,chapelhillmagazine.com Elizabeth Shugg - 15 1501 — eshugg_awakeliving com 2) The OCCC Board Members will develop relationships with key community and government leaders. We will arrange to meet one -on -one with these individuals to spread awareness throughout the community. We will personally invite them to our grand opening ceremony, distribute marketing flyers describing our offerings, email quarterly newsletters, and periodically send invites to upcoming events. Orange County Cultural Center Confidential Page 19 of 30 Strategic Business Plan (v.1.0) 9/8/2011 Potential Venues & Contacts: Margaret Cannell — Hillsborough/Orange County Chamber of Commerce Elizabeth Read — Alliance for Historic Hillsborough Katharine Paulhamus — Director of the Burwell School Bernadette Pelissier — Chair; Orange County Commissioners Tom Stevens — Mayor of Hillsborough Mark Chilton — Mayor of Carrboro Mark Kleinschmidt — Mayor of Chapel Hill Kay Hagan - US Senator David Price - US House Representative Ellie Kinnaird - State Senator Verla Insko - State Representative; District 56; Orange Co. Bill Faison - State Representative; District 50, (Caswell, Orange) Joe Hackney - State Representative; District 54; (Chatham, Moore, Orange) Pat Rhodes — Superintendent, Orange County Schools Thomas A. Forcella — Superintendent, Chapel Hill / Carrboro City Schools 3) OCCC Board Members will be visible at community events, distribute flyers to a targeted customer base, invite Chamber of Commerce for after -hours events, and offer to speak to civic groups, rotary clubs, senior centers, schools, and other organizations that will be potential customers. 4) Member organizations will cross - promote each others' events to their own organizations, taking advantage of their mailing lists. 5) After the Grand Opening, we will host periodic (quarterly) public open houses and invite the local Chambers of Commerce, School Board Members and the public at large to ensure that local community members will become and remain familiar with the Center and its offerings. 6) The Center will also host significant cultural performances from out -of -town bands and theatrical groups. Outside acts will be solicited by partnering with local booking agencies, such as Time and Tide Productions. In addition, the Center will pursue partnerships with other nearby arts centers, such as the Arts Center of Carrboro and the Ballroom in Saxapahaw, to share leads for acts. Advertising Media Flyer: We will create an attractive 1 -page color flyer/ sales sheet that describes our various rental spaces, high lights our unique features, and includes photographs of the space. Flyers will be distributed at meetings and wherever there is community presence. Orange County Cultural Center Confidential Page zu of ju Strategic Business Plan (v.1.0) 9/8/2011 Website: The OCCC will have a dedicated website that will be updated, at a minimum, on a weekly basis by the Coordinator. Our mission and marketing message will be prominently displayed and will include detailed information about our rental spaces. Event updates will be made periodically to ensure a fresh and interesting presence and to keep visitors informed and interested in returning to the site. We will include customer testimonials, write ups of past events, and event photos. The website will have the option for customers & patrons to sign up for email notifications and newsletters. Social Media: We will take advantage of the customary social media outlets including Facebook and Twitter. The Coordinator will post, at a minimum, engaging weekly messages to keep users informed about current events and keep the OCCC fresh in their minds. Newsletter: The Coordinator will send out a monthly electronic newsletter. Networking Board members and the Coordinator will maintain ongoing dialogue with community and government members. They will build local relationships by attending community group meetings, Chamber of Commerce events, school meetings and other events hosted by local church, civic clubs and groups. The focus will be to get our name out, create an audience for events, and connect with potential fenders. SALES PLAN Member organizations that sit on our board will be a large part of our customer base, therefore it will not be necessary create a sales plan for this group. However, for non - member organizations, our plan is to identify & research prospects and determine which services we offer that they would be interested in. We will research each potential customer individually, understand their needs, and arrange one -on- one meetings with the decision makers. Our presentation will include an in -depth explanation of our offerings, details of how the client will benefit, and distribution of flyers and business cards. We will follow up with them via a quarterly sales call to continue to encourage them to use our facilities and email them a newsletter and sales flyer quarterly. OPERATIONS, PERSONNEL, AND MANAGEMENT MANAGEMENT The OCCC will be overseen by the OCCC Board of Directors and initially managed by John Delconte, the Chairman of the Board. John D. Delconte Cofounder and Chair, Mr. Delconte brings to a strong background in organizational development, arts administration, and entrepreneurship. He has served as a medical writer in the pharmaceutical industry since 1993. In 1999, he joined the Hillsborough Arts Council (HAC), and served as Chair from 2003 to the 2007. He extended the HAC's very successful Last Fridays program from 6 months per year to year- round. Also in 1999, he began volunteering with the Orange County Dispute Settlement Center of Orange County, NC, and became a certified divorce mediator and large -group facilitator. In August 2001, John founded Compass Communications, Inc. to offer organizational development services. He Orange County Cultural Center Confidential Page 21 of 30 Strategic Business Plan (v.1.0) 9/8/2011 taught courses of personal finances and finding employment at Alamance Community College, and holds an MS in behavioral neurobiology from Rensselaer Polytechnic Institute (Troy, NY). John combines backgrounds in science, non - profit business, and industry. The following competencies will be provided by Mr. Delconte for overall management of the OCCC: • Manage the financial position of the organization. • Manage move -in, purchases and space upgrades. • Personnel management, in conjunction with a hiring committee: interview, hire and manage a part-time Coordinator, and part-time Custodian. • Oversee rentals and space management. • Oversee facility maintenance and coordination with Orange County as required. • Coordinate marketing, sales, and community networking with other Board Members. Day -to -day operations will be gradually transferred to the Coordinator after that position is filled. Additional competencies required for the success of the Center to be provided by various Board Members: Community outreach to increase presence and facility usage utilizing sales and marketing strategies. Community networking to maintain ongoing community involvement and support. Fundraising efforts for the various phases of the project as well as ongoing operational support. PERSONNEL PLANNING Part -time Coordinator A part-time Coordinator will be hired by December 1, 2011 to work approximately 10 hours per week at a starting salary of $17 per hour. The Coordinator will be responsible for day -to -day support of the Center and will report to the OCCC Board of Directors. The position will eventually become fulltime when the center is at full capacity. Responsibilities: Sublet the available spaces within the center, including the artist studios (monthly), classrooms (hourly), auditorium (hourly), cafe (monthly and per event), and gallery (monthly). Liaise with third parties, such as promoters, to fully book the auditorium. Orange County Cultural Center Confidential Page 22 ot30 Strategic Business Plan (v.1.0) 9/8/2011 • Maintain the OCCC website. Regularly maintain Twitter and Facebook accounts. • Write & distribute monthly newsletter. Write grants to support the center. • Field phone calls and email queries within a business day. • Handle accounts payable /receivable through accounting software. (Qualifications: • Interest in and knowledge of the arts, history, and local culture. • Office skills, including word processing, internet, email, and bookkeeping. • Ability to use bookkeeping software, such as Quickbooks • Strong interest and ability to use social media. • Ability to adhere to a budget. • Ability to work under pressure. • Ability to develop and adhere to deadlines. • Demonstrated integrity and honesty. • Creativity and ideas. • Ability to communicate effectively. • Strong organizational skills. Part -time Custodian A part-time Custodian will be hired by December 1, 2011 to work approximately 10 hours per week at a starting salary of $9 per hour. The Custodian will be responsible for day -to -day up -keep of the Center and will report to the Coordinator. Responsibilities: • Weekly cleaning of rented artist studios including garbage removal, floors, windows, and spot cleaning as required. • Cleaning of common areas including bathrooms, hallways, and entrances. Orange County Cultural Center Confidential Page 23 of 30 Strategic Business Plan (v.1.0) 9/8/2011 • Post -event cleanup for classrooms and auditorium. Qualifications: • Flexibility: available to work both a weekly schedule and on call as required according to usage. • Work independently without consistent supervision. • Honesty and integrity. RISK MANAGEMENT The OCCC will carry the following insurance coverage: • Property insurance to protect the Center's contents. • General Liability insurance to cover any injury or damage to other people, their reputation, or their property. • The OCCC will require organizations hosting on -site events to carry their own liability insurance. The event bartender will obtain liquor liability insurance. HOURS OF OPERATION • The Center will be opened for limited office hours for the first year (approximately 10 hours /week). Once fully operational, the Center will be opened during normal office hours (9 to 5, Monday through Friday). • Renters of studio spaces will be issued their own set of keys, or electronic key fob, and will have 24 -hour access. • Organizations that rent the classroom and/or auditorium spaces will be allowed access by the Coordinator or the custodian on an as needed basis. REGULATIONS, COMPLIANCE & REPORTING We understand that opening a facility like this will have public gathering regulations and we will, as a follow up to this business plan, set up processes to ensure that we are in compliance with all regulations that affect our business, including ADA accessibility and health department regulations for the cafe. We will ensure that our staff is aware of all regulations, policies & processes and hold them accountable if they do not comply. LICENSES, PERMITS, REGULATIONS & TAXES The OCCC will be a registered 501(c)(3) non - profit organization exempt from Federal and State taxes. No goods will be sold by the Center —the Cafe will be responsible for their sales. The cafe will obtain a permit from the Orange County Health Department, if food will be prepared on site. Orange County Cultural Center Confidential Page 24 of 30 Strategic Business Plan (v.1.0) 9/8/2011 COMPUTERS, BUSINESS & FINANCIAL SYSTEMS The Coordinator will require a computer to perform daily operations including scheduling, bookkeeping, marketing, website /social media maintenance, and general correspondence. We will utilize Google Apps for scheduling, web sites, newsletters, and other needs. The Coordinator and Board of Directors will have shared access. The calendar of events and classes will be maintained by the Coordinator. Quickbooks will be utilized for general bookkeeping purposes. BILLING, CREDIT TERMS & COLLECTION PROCESS • Studio renters will be required to submit monthly rental payments to the Coordinator on the first day of each month. • Classroom and auditorium renters will be charged a 50% deposit to secure rental space and must pay the remaining 50% two weeks prior to their scheduled event. Cancellations within two weeks prior to the event or class are fully refundable less a transaction fee, with no refunds permitted within two weeks of an event or class. PROCESSES Artist Studio / Office Rentals: • Rentals will be available on a first come first served basis. • Individual rental agreements will be signed by each renter and renewed on an annual basis. • First month's rent, security deposit, and references will be required before move -in. • One set of keys or key fob will be provided to renters on the first day of occupancy. • The OCCC will provide weekly custodial services. • The OCCC will coordinate with the County for necessary building maintenance issues as they arise, including HVAC, electrical, roofing, etc. The Center will be responsible for plumbing, stage, sound, seating, and other interior maintenance issues. Classroom / Auditorium / Gallery Rentals: • Rentals will be available on a first come first served basis. • Member organizations will be given first priority on space rentals, but they will be required to follow the same rental agreements as non - member organizations. • Daytime use of the auditorium space (from 9 am to 5 pm) will be available for booking for member organizations in exchange for in -kind volunteer time, on a 1:1 basis. • Individual rental agreements will be signed by each organization for every event. • Organizations will be required to present an insurance certificate at the time of deposit. Orange County Cultural Center Confidential Page 25 of 30 Strategic Business Plan (v.1.0) 9/8/2011 • The OCCC will provide custodial services. • Organizations will be allowed access to the rental spaces via the Coordinator. Access to Professionals /Counsel • The OCCC will hire a Certified Public Accountant to review the books and file required tax forms on an annual basis • David Harris of Linck, Harris Law Group, PLLC has been hired to file for incorporation and nonprofit status. START UP PLAN Phase 1 • Present Business Plan to Orange County and the Town of Hillsborough • Discuss the plan with the town planning department to make sure the property is zoned for the proposed use, and that there is sufficient parking • Discuss and agree upon rental terms with the County, sign lease • Obtain a certificate of occupancy from the county building inspectors • Submit article to local papers about the signing • Setup 501(c)(3) • Purchase necessary insurance coverage • Connect utilities: telephone /intemet • Clean space in preparation for rentals • Purchase folding chairs and tables • Build simple stage • Purchase computer and printer /fax for Coordinator • Purchase office & operating supplies: toilet paper / paper towels / cleaning supplies / computer/ paper / misc. office supplies /other • Interview and hire part-time Coordinator • Interview and hire part-time Custodian Orange County Cultural Center Confidential Page 26 of 30 Strategic Business Plan (v.1.0) 9/8/2011 • Create a scheduling calendar • Set up Quickbooks /spreadsheet for finances (with assistance from CPA) • Create marketing flyer • Create website, social media sites • Create signage • Pre - opening advertising, promotions, and articles in newspapers • Network with community & government folks • Speak at civic clubs, chamber meetings and other community meetings • Host a Chamber After Hours event at the new facility soon after the opening • Initiate fundraising feasibility study Orange County Cultural Center Confidential Page 27 of 30 Strategic Business Plan (v.1.0) 9/8/2011 FINANCIALS: YEARS 1 -3 OCCC Statement of Activities Notes: The more acts and classrooms are booked, the more we can pay the coordinator. At full capacity, we would earn about $100,000, and that extra money would go mostly toward making the coordinator a fulltime position. Orange County Cultural Center Confidential Page 28 of 30 Strategic Business Plan (v.1.0) 9/8/2011 YEAR 1 MONTHLY ANNUALLY BEGINNING NET ASSET BALANCE $12,000 REVENUE Studio Rentals (7 units - assume 6 rented @ $175 /mo ea) $1,050 $12,600 Classroom Rentals (15 hrs /mo @ $20 /hr) $300 $3,600 Auditorium Rental (4 events /mo @ $300 /event) $1,200 $14,400 Conference Room Events (1 event /mo @ $100 /event) $100 $1,200 Gallery Rental _ ($300 /mo) $300 $3,600 Cafe Rental ($300 /mo) $300 $3,600 Bar Rental ($50 /event, 4 events /mo) $200 $2,400 Storage Rental ($100 /mo) $100 $1,200 Rental Subtotal $3,550 $42,600 Hillsborough Tourism Grant $12,000 General Fundraising $4,200 !TOTAL REVENUE; $58,800 EXPENSE Whitted Building Rental $2,333 $27,996 (Includes Utilities) Part-time Coordinator $680 $8,160 (10 hrs /wk @ $17 /hr, 48 wks /yr) Part-time Custodian $360 $4,320 (10 hrs /wk @ $9 /hr, 48 wks /yr) Insurance $4,000 Tax Preparation / Review Books $3,000 Phone /Fax /Internet $3,000 Postage $1,500 Printing $1,500 Office Equipment / Supplies $2,000 Contingency $2,124 TOTAL EXPENSE $57,600 ENDING NET ASSET BALANCE $13,200 Notes: The more acts and classrooms are booked, the more we can pay the coordinator. At full capacity, we would earn about $100,000, and that extra money would go mostly toward making the coordinator a fulltime position. Orange County Cultural Center Confidential Page 28 of 30 Strategic Business Plan (v.1.0) 9/8/2011 OCCC Statement of Activities YEAR 2 MONTHLY ANNUALLY BEGINNING NET ASSET BALANCE $13,200 REVENUE Studio Rentals (7 units @ $175 /mo ea) $1,225 $14,700 Classroom Rentals (30 hrs /mo @ $20 /hr) $600 $7,200 Auditorium Rental (6 events /mo @ $300 /event) $1,800 $21,600 Conference Room Events (2 events /mo @ $100 /event) $200 $2,400 Gallery Rental ($300 /mo) $300. $3,600 Cafe Rental ($300 /mo) $300 $3,600 Bar Rental ($50 /event, 6 events /mo) $300 $3,600 Storage Rental , ($100 /mo) $100 $1,200 Rental Subtotal $4,825 $57,900 Hillsborough Tourism Grant $12,000 General Fundraising $7,500 TOTAL' REVENUE $77,400 EXPENSE Whitted Building Rental $2,333 $27,996 (Includes Utilities) Part-time Coordinator $2,040 $24,480 (30 hrs /wk @ $17 /hr, 48 wks /yr) Part-time Custodian $720 $8,640 (20 hrs /wk @ $9 /hr, 48 wks /yr) Insurance $4,000 Tax Preparation / Review Books $3,000 Phone /Fax /Internet $3,000 Postage $1,500 Printing $1,500 Office Equipment/ Supplies $2,000 Contingency $2,384 :TOTAL EXPENSE $78,500 ! NET ASSETS $12,100 Orange County Cultural Center Confidential Page 29 of 30 Strategic Business Plan (v.1.0) 9/8/2011 OCCC Statement of Activities Orange County Cultural Center Confidential Page 30 of 30 Strategic Business Plan (v.1.0) 9/8/2011 YEAR 3 MONTHLY ANNUALLY BEGINNING NET ASSET BALANCE $12,100 REVENUE Studio Rentals (7 units @ $175/mo ea) $1,225 $14,700 Classroom Rentals (60 hrs /mo @ $20 /hr) $1,200 $14,400 Auditorium Rental 10 events /mo @ $300 /event) $3,000 $36,000 Conference Room Events (2 events /mo @ $100 /event) $200 $2,400 Gallery Rental ($300 /mo) $300 $3,600 Cafe Rental ($300 /mo) $300 $3,600 Bar Rental ($50 /event, 10 events /mo) $500 $6,000 Storage Rental ($100 /mo) $100 $1,200 Rental Subtotal $6,825 $81,900 Hillsborough Tourism Grant $12,000 Capital Campaign for Build -out $1,000,000 General Fundraising $0 TOTAL REVENUE $1,093,900: "I EXPENSE Wh.itted Building Rental $2,333 $27,996 (Includes Utilities) Full -time Coordinator $2,947 $35,360 (40 hrs /wk @ $17 /hr, 52 wks /yr) Part-time Custodian $720 $8,640 (20 hrs /wk @ $9 /hr, 48 wks /yr) Employee Payroll Taxes (est 25 %) $917 $11,000 Insurance $5,000 Tax Preparation / Review Books $3,000 Phone /Fax /Internet $3,000 Postage $1,500 Printing $1,500 Office Equipment / Supplies $2,000 Contingency $1,000 Fundraising Consultant $7,300 Build -out Costs $890,000 T©TAL`EXPENSE $997,296 NET ASSETS $8,704 ENDOWMENT $100,000 Orange County Cultural Center Confidential Page 30 of 30 Strategic Business Plan (v.1.0) 9/8/2011 Whitted Building • Meeting space in Northern Orange County has long been sought -after by internal county clients, external meeting planners and local government and industry. • The Whitted Building offers attractive space that could be used in a multitude of ways. • The building will require some budget for upkeep, design and fine - tuning for ANY options selected for the space. Primary BOCC Meeting Room • The primary, "Large Room," is being considered for commissioners who desire a permanent space for standard business meetings, school board meetings and others. • Raise floor area in back for BOCC. Partition that area off from the rest of the room— allowing it to be both protected; and used for concurrent events. • Would not have permanent seating, leaving th functions. e options open for other Recommendations (...cont) • Place large doors across the large open area in back, sectioning the entire main room off from the rest of the building; allowing all other rooms to be used without access to the main area and keeping that space private. • Great space for meeting breakout rooms, training, committee meetings etc. • On the left- side, room could be turned into two (2 )separate rooms. • Room on the right is a good size room for up to 40/50 people depending on room set up. Left Side of Large Meeting Room • Great space for meeting breakout rooms, training, committee meetings etc. • On the left side could be turned into 2 separate rooms. Right Side /Room Functionality • Large Room to the right, off entrance: • Great meeting room space, good lighting etc. • Has private entrance from front door. • Access to rest of the first floor from back of room and bathrooms. • Can use hallway for pre function space. • Closet area in room good for storage for tables and chairs. Visitors Bureau • Good space for person /department responsible for handling the space. • Good storage space. • Enlarge and upgrade kitchen area to allow caterers to prep food for different events. Market Segments to Consider for Usage • County Government • State Government — Hillsborough is centrally located and easy access off I -85 and I -40. • Civic Groups • Social /Wedding Groups —Could be a big draw since there is no space available in Hillsborough for groups over 100/150 ppl. Market Segments to Consider for Usage (...cont) • Some Corporate — would have to work out better hotel selections for many corporate groups and address location. Perceptions of distance will be a stumbling block. A good area to explore would be west of Hillsborough. • Parking — Limited but possible • More and larger bathrooms • Storage space — tables, chairs, AV equipment. • Who will be responsible to book space should it be used for meeting or other events. • Who will be responsible for room set ups and cleanups. • Who will be responsible for space during evening hours. • All this is a full time position for more than one person. • VB would love to see good meeting space in Hillsborough. • Currently agency cannot even suggest Hillsborough as an option due to lack of space. • Most calls are for social events and the Big Barn is dated and not attractive to many groups. Also their cost is extreme for the condition of the facility. • VB has worked with some government groups and distance to meeting space is a concern. • However price is a driving factor i selection. A marketing campaign the facility and the location. The could supply this. i making a could help promote Visitors Bureau Orange County Arts Commission Recommendations • Depending on the rental rate /agreement, Hillsborough's arts groups and public schools could be interested in an upgraded meeting /performance space on the 2nd floor of the Whitted Building. Orange County Arts Commission Recommendations Visitors Bureau • In addition to public meeting space, this space could be used for performances, concerts, presentations, lectures, exhibits, etc. in various arts disciplines. Orange County Arts Commission Recommendations • If planning for a combined meeting /performance space, consultation with local theatre consultant Robert Long is recommended • (Theatre Consultants Collaborative, Inc., www.theatrecc.com, phone 919/929 -7443, fax 919/929 -4519, rlong(c�theatrecc.com. Summary • Whitted Building would provide viable, alternative meeting space in Hillsborough— a part of Orange County that does not currently house enough meeting space. • Whitted Building would be useful for both Visitors Bureau, Arts Commission and Orange County Commissioners. • Whitted Building would create modest demand for social events such as reunions, school planning meetings and government groups. • Rental price is a driving factor. • A marketing campaign would be necessary. • Facility upgrades would be required. Orange County Arts Commission Recommendations Visitors Bureau • Lighting, sound, acoustics, size and flexibility of performance area /stage, size and comfort of audience area, etc. are all legitimate concerns. • The rental rate /agreement and quality of the performance space will either increase or decrease arts bookings. n S w Arts CommIS'SJon Sprinkler and Structutt Ri 'b Ort6mlint Proposal. Whitted Bldg A GSF 34,149 1 st Floor GSF 13,282 Arts Comm. GSF Proportion 38.89% Sprinkler $ /SF' 6.88 Sprinkler Cost Share 91,397 (based on % GSF) Arts Comm. Sprinkler Reimbursement 91,397 1 st Floor Structural Steel Reimbursement 27,300 Total Reimbursement 118,697 1. $224,988 Sprinkler Cost, plus $20,000 Sprinkler Design Cost, less $10,000 credit for avoided ground rated corridor /code costs. S F-WIA r'N 5 J {`V J ON A+�Qchimen+ 5 Notes from the County Commissioners walk through of the old Library space at Whitted 1 -23 -2012 Present: • Alice Gordon • Eric Hallman —Town Commissioner • Pam Hemminger • Barry Jacobs • Earl McKee • Steve Yuhasz • Donna Baker • David Hunt • Pam Jones Comments: • Generally liked space and saw merit as a Board meeting room; • Acoustics will need to be addressed; • Desire to offer to Town of Hillsborough and Orange County School Board for meetings; • Marginal interest in sharing with OCCC. Concerned the dais will be difficult to manage if it becomes part of the performance stage the OCCC would need; • Some concern that the space may be oversized for the purpose; • Interested in creating a smaller meeting room in the "children's area" for closed sessions and perhaps work sessions; • Debated fixed vs. movable seating —no clear winner; • Discussed long -term possibility of creating a TV studio in the area previously known as the North Carolina Room (David Hunt) • Clerk's staff expressed desire to bring cablecasting equipment from Southern Human Services Center(SHSC) to this location (only the equipment needed to update the bulletin board and other postings on the public access channel —would not affect equipment used to televise meetings from SHSC). Currently they must physically go to SHSC to accomplish this work. • Ensure the meeting room is viewed in context with the overall long -term space needs for the County. Commissioner Gordon wants to update the space study (or create a whole new one, since the old one is basically completed at this time) • Concerned about parking and how we get past that hurdle; • Concerned about the impact on the neighborhood. • Site security would need to be enhanced; • Gave assurances that the area was now structurally sound.