(13) What’s your opinion of the second phase of the Embassy cultural complex,
the theater?
Alston: As I indicated in the answer to the proceeding question, we need to be practical, but we should proceed. The theater is to be built with private funds and we should continue to solicit and encourage donors to contribute. The theater is somewhat unique among the components of the Embassy Square in that it is the component with the greatest possibility of generating enough revenue to sustain its own operation.
Gupton: The theater will be of great benefit to the city if it is going to be self-supporting via grants or endowments to fully cover the operating expenses. The city cannot afford to provide any of the maintenance or operating expenses for the foreseeable future.
Harper: Many citizens have talked to me about the theater portion of the Embassy cultural complex. So I requested a meeting with Ms. (Kathy) Powell at the foundation to ask about the plan for the operation of the theater. She and Mr. (Sam) Watkins agreed that the costs of operation should be covered by revenue from groups who rent the theater. So my opinion of the theater is that it is a $900,000 investment in land by the taxpayers in our future that won’t cost anything further to operate.
Daeke: I’m not sure how to fund it. The performing arts portion is yet to be realized, and I hope, in time, the city’s position will be such that we could open and operate it at a profit, or at least at break even. I don’t see that at this point.
Yount: The city really has no say-so in this. It is the private foundation that is building this project on land we have already given them. However, if they asked for the city’s endorsement, I would not lend an endorsement to this project until: (1) the city has built its fund balance to an unrestrictive 35 percent; (2) the foundation provides evidence of a supporting endowment fund; and (3) a comprehensive marketing plan shows that the facility will be completely self-supporting. The city cannot afford any operational costs now or in the very distant future on any additional buildings. We should never allow the city to take on a building that the city cannot afford to operate. So, my position would be that the city take this position and make it very clear that we will not become responsible for this facility.
Wester: I have total confidence that the Embassy Square Foundation will raise the funds, build the facility, and provide a business plan that makes sense.