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84-418 WHITE - CITV CLERK PINK - FINANCE G I TY OF SA I NT PA U L Council CANARV - DEPARTMENT BLUE - MAVOR File NO. �� / 1 Council Resolution Presented By�*�• �� J Referred To Committee: Date Out of Committee By Date �'9'e� �-y RESOLVED, That the City of St. Paul is in support of the attached bill authorizing the issuance of an additional liquor license for the Ordway MUS�Ci Theatre� 41n�+ ��n�Y1CC '�'A �tn �n �r1.d��F'nn �Fn 'f�'1C �n �7!`pY1CPC' NG^��Ae��-^•J � COUNCILMEN Requested by Department of: Yeas Nays � Fletcher °reN1 [n Favor Masanz NiCOSia saMMwt � __ A ga i n s t BY Tedesco Wilson Adopted by Council: Date MAR 2 7 �9v� Form Approved by City Attorney Certified P• •s d y ouncil S a BY By � A►p y iVlavor: Date •.�R �� 14R� �►pproved by Mayor for Submission to Council � BY BuSHED AP R i 19a4 . . - � .1��",���.� �� '�o-.? • ,. ---- __ _ _ '—....s ;, .,r. `f� _ `` '��,� � � � �� `' '�l . r -�.-_ - �r� ,� �1 ' � ,;;.�� � � ; .I ,+� ' '± • �� . . � � ��� A►; I I ��; �,. ,.. �''� � �, , . 1�. � �� .►� � ( � , ; i�'�'j � ��, � ��� f . � �� i. ,� ' � �. �. ' . I�. , . �� . , �;a _L__�.��! �-�-�-�- � 1�_ • �1 Fs:.a ■_ . ..a 1_'� -� ,s�• ai�.a �� ,� r b , ��'' — �� I . ..... _ F . � _ . � . • � , � . � � � ��-�i�' ORDWAY MUSIC THEATRE - PROJECT CONCEPT AND SUMMARY The performing arts in the St. Paul-Minneapolis area are facing a unique opportunity for their further development. Since growth in artistic quality can be impeded by facility limita- tions, the creation of a hall with outstanding nerformance and rehearsal facilities would assure the continued vitality of performing arts in the Twin Cities. When the Civic Center Theater was closed in 1980, owing to structural deterioration, downtown St. Paul was left with no major performing hall. It is this void the Ordway Music Theatre will fill for the benefit of the entire metropolitan area. During 1981, the St. Paul-Ramsey Arts & Science Council (now the United Arts Council) developed and guided a plan to promote the construction of the Ordway Music Theatre. In June of 1982, in order to clarify questions of organization and financing, it was decided to incorporate the Ordway Music Theatre as a free- standing 501 (c) (3) corporation. Articles of Incorporation were filed and Certificate received from the State of Minnesota and the IRS; Bylaws have been adopted and a Board of Directors has been elected. Construction and use of the Theatre is intended to meet the following goals: A. To enhance the artistic growth and economic health . of performing arts in the Twin Cities area; B. To continue ph_ysical improvement of downtown St. Paul; C. To further cultural development of downtown St. Paul and balance the strong commercial develonment; D. To help meet social needs through economic benefit to the community. The new Theatre is being designed as the Arinci�al performing hall for the Saint Paul Chamber Orchestra, the Minnesota Opera and the Schubert Club. The Minnesota Orchestra will also be a major user of this facility. Additional users will consist of a variety of performing organiza- tions, bringing dance, musicals, film, choral and musical drama to the Theatre. Meeting space for �civic and business groups will also be available when the facility is not fully scheduled. The new Theatre' s facilities will include: 1. An 1, 800 to 2,000 seat main house, suitable in size, shape, equipment and acoustics for orchestra, opera, dance, recitals and musical productions; -over- 2. An approximately 300-seat performing hall for use by smaller groups, including film and drama, as well as music and dance; 3. Appropriate support and rehearsal spaces. In addition to the obvious cultural enhancement, the Theatre will have considerable impact on the metropolitan area's con- tinuing development. The most immediate impact will be economic; that is, construction and servicing of the new facility. Businesses will develop to complement and support the Theatre. Evening events will increase patronage of existing businesses by drawing people to the downtown area before and after performances. The initial response to the need for the Theatre came in 1981 when the Ordway family made an imaginative and generous collective commitment to provide $10 million, and is currently . considering an additional gift of $3 to $5 million. As of January, 1984 , commitments from foundations, coroorations and other individuals amounted to an additional $16.4 million. The total amount needed for completion of this project, including land, construction, architectural and other fees, is $37 million. ��-�/� ORDWAY MUSIC THEATRE Fact Sheet LOCATION Overlooking Rice Park on Washington Street, between Fourth & Fifth Streets, in downtown St. Paul. FACILITIES Two theatres, both suitable for music, dance, film, recitals and lectures. The main hall, with its deep and tall backstage and its � forward extending stage, is ideal for opera and musicals. Specially � designed shell and acoustics planning make it ideal for chamber orchestra or full symphony. Appropriate support facilities and services, rehearsal areas, unobstructed sightlines, state-of-the-art sound and electronics. Main Hall . . . . . . Proscenium: 68 ' wide X 41' high X 78 ' deep Seating: 1, 811 Stage seats: 140 Total 1,951 Smaller Hall . . . Proscenium: 46 ' wide X 24 ' high X 30 ' deep Seating: 317 . Large Rehearsal Hall: 58 ' X 58 ' Small Rehearsal Hall: 30' X 40 ' PROJECT COSTS Land . . . . . . . . . . . . . . . . . . . . $ 4 , 018,000 Building . . . . . . . . . . . . . . . . . . 26,000,000 0'Shaughnessy Plaza . . . . . . . . . . . 1,000,000 Architectural, Legal and Financial Consultant Fees . . . . . . . . . . . . . 3,175,000 Landscaping, Permits, Insurance, Utilities, Contingency & Miscellaneous . . 1,033,000 Administration, Fund Raising, Grand Opening & Project Management . . . . . . . . . . . 1,082,000 SUB-TOTAL . . . . . . . . . . . . . . . . . $ 36,308 ,000 Additional Costs . . . . . . . . . . . . . 838 ,000 1984 Theatre Operating Budget Repair of Civic Center East Wall Temporary Parking Operating Endowment . : . . . . . . . 5 ,000,000 To be raised through �financing MAJOR USERS The Saint Paul Chamber Orchestra - Minnesota Opera Company - The Schubert Club - The Minnesota Orchestra GROUNDBREAKING COMPLETION OPENING October, 1 82 December, 1984 January, 1985 NEED W ti h the closing of the St. Paul Civic Center Theater in 1980, a serious lack of performance 5pace was felt by groups throughout the Twin Cities. Remaining, existing facilities have not filled the void. Scheduling difficulties, suitability, size, acoustics, and unavailability of rehearsal space make long-range scheduling impossible. CULTURAL IMPACT Because the facility will have both a large and a small house, and the multi-purpose flexibility of both, over forty local perform- ing organizations have expressed interest in the Theatre. Several rehearsal areas, storage space and other support services will provide economies for users. The quality and innovation designed into the Theatre will also attract national and international touring groups. TWIN CITIES FACILITY An analysis of season ticket holders for the Saint Paul Chamber Orchestra and the Schubert Club shows that half come from each of the Twin Cities. For the Minnesota Opera Company, nearly 70� of season patrons come from Minneapolis, with the remaining 30� from St. Paul. As evidenced by the above statistics, no performing arts organiza- tion or facility can survive without drawing supporters and patrons from the entire metropolitan area. The Orchestra Hall Building Fund and Endowment Fund raised $25.3 million. St. Paul companies, foundations and individuals contributed 21$ of that amount. A survey of six major private corporate foundations in St. Paul shows that in 1982 they contributed $7 million to Minneapolis organiza- tions or projects. This represents 22$ of their total giving for that year. Of the amount raised for the Ordway Music Theatre as of March l, 1984, I8� came from Minneapolis firms, foundations and individuals. If the Ordway Music Theatre is to enjoy reciprocal support, an additional $1.4 million needs to be raised in the Minneapolis area. _ __ � �- �i�� ORDWAY MUSIC THEATRE . ASSESSMENT OF NEED Previous studies over the past decades have made assessments and recommended solutions to meet the need of the St. Paul - Minneapolis community .for a major performing arts theatre. Current assessments among performing arts organizations, com- bined with information from the previous studies, identify , three major areas of need directly related to performance facilities: Artistic growth - Planning for growth, change and performance is made difficult, and in some cases impossible, beyond a year in advance if performance spaces are unknown. Currently available performing facilities in the metropolitan area have principal users whose needs and schedules receive priority over those organizations who will be principal users of the Ordway Music Theatre. Audience c�rowth - In order for any performing arts organization to flourish, its audience must continue to grow and develop for both cultural and financial reasons. The three principal users of the Ordway Music Theatre lack an identity with a physical place, except that of the metropolitan a.rea generally and, therefore, lack a degree of visibility and easy accessibility. However, a specific building in a central location would heighten visibility for its principal users and bring greater audience growth and a greater percentage of earned income. Improved management - Scheduling difficulties for performance and rehearsal space is a problem to a greater or lesser degree for each of the principal users, and for the long list of potential theatre users as well. This presents barriers to planning for future directions, both artistically and organizationally. Cost economies such as a centralized ticket office and economic storage space are also needed. Existing performance facilities are not meeting these needs for varying reasons, including acoustics, physicai condition, size, location and lack of supporting facilities. The Frederick King Weyerhaeuser Auditorium at Landmark Center was designed with a more intimate setting in mind, rather than as a full-scale per- forming hall. The Shubert and Orpheum Theaters could not -over- achieve "state of the art quality" even with considerable costly renovation. The O'Shaughnessy Auditorium will continue . to be used and will be an excellent complement to a downtown facility. Some metropolitan area facilities are excellent, but present serious scheduling and location problems. Orchestra Hall and the Guthrie Theatre are not only single purpose halls, but are identified with other organizations which have first priority in scheduling. The Walker Art Center, the Colonial Church, and , Temple Israel will continue to be used by the St. Paul perform- ing arts organizations, but these facilities also pose scheduling problems. The Ordway Music Theatre project is a culmination of earlier studies and proposals, documenting the need for a high-quality performing arts facility. � ORDWAY MUSIC THEATRE The Financing Plan There are three basic elements in the financing plan for the Ordway Music Theatre. The first, and most important, is the successful conclusion of the campaign. The Ordway family is considering additional commitments of up to $5 million. The endowment is planned from the proceeds of the sale/leaseback arrangement. This leaves approximately $6 million to be raised in the community. Prospect Category Goal Pledged Percent Ordway Family and $16,000,000 $10, 898,256 68$ Other Individuals Corporate 12,000,000 9,686,200 81$ Foundations 9,500,000 6,020,000 63� Interim Financing (McKnight Foundation) 3,300,000 3,300,000 100g Endowment (Sale/Leaseback) 5,000,000 p! yl TOTAL $45, 800,000 $29,904 ,456 65$ The second element is closely tied to the first. Because many of the commitments are in the form of pledges payable over several years, it is necessary to borrow interim funds to pay project costs as they are incurred. In order to ease this financing burden, The McKnight Foundation has generously made available to the Ordway Music Theatre a $10 million loan over the next three years. If certain conditions are met, this will be an interest-free loan, saving the Theatre approximately $3. 3 million in interest expense. The final element of the plan, and most complex, involves the sale of the project to a �imited partnership. Because the partnership is a non-exempt entity (i.e. , a taxpayer) it has the opportunity to take advantaqe of tax saving benefits during the early years of ownership. Accordingly, rental payments during the early years will be reduced significantly as a result of contributions by partners in considera- tion of these and other benefits. The direct impact on the project is the opportunity to invest approximately 80� of the sale proceeds today to fund 100� of the lease liability during the 25-year lease term. It is expected that the Theatre will be sold for $40.6 million. Of these proceeds, approximately $33.6 mill�on will be invested in an annuity type investment with maturities of principal and interest equal to the amount and timing of the lease payments. Having funded the lease obligation in this manner, the balance of the sale proceeds, approximately $7 million, can be used to form the basis of an opera- ting endowment. 3/1/84 . . P�f�./ � � O1tDAVAY MUS I C THEATRE March 1 , 1984 �����5� $LQ ����14� P��. Ordway Family �1 �liQa �1�� The Bush Fouttdatioa Daytoa Hudson Fouadation B. Dalton Bookaellcr Dayton' a Targct Stores 3M Foundation I . A. O'Shaughncssy Foundation The St . Paul Companica , Inc . The Saint Paul Foundation Wcat Publishiag Company �5 0 o�,Q4.4. �Q $1...44.4.�.9�4 Andersen Foundation Anonymous F . R . Bigelow Foundation First Bank System, Inc . �c Affiliates Thc Pillsbu=y Company Foundatioa $�Q.�QQQ �Q $�4.0 0 0 Amhoist Foundation Mr . dt Mss . Kenneth N. Dayton DeLuze Check Printers Foundation Mr . g Mrs . W. john Driscoll Economics Laboratorq, Inc . Gcneral Mills Foundation Mary Livingston Griggs bc Mary Griggs Bu=ke Foundation Honcywcll Mary Andccscn Huliags Lcad Tcusts Lang Family Mardag Foundation Minncsota Mutual Life Insurance Compatty Elizabcth W. Musser john M. Musscr Northwcstern Bell Telephone Company No:wcst Cocporation dt Affiliatcs Toze: Foundation $��.Q42 �� .��.44.�4.4. American National Bank St . Paul A=thur Andersea d� Co . Hugh J . Andcrsen Foundation Anonyanous Arche= Daniels Midlaad Foundation Athwin Fouadation David Winton Bell Foundation -ovex- �10 .QQQ �Q ��QQ�QQQ (Continued) james F. Btll Fouadation judsott � Barbara Bcmis . BMC Industriea , Inc . Mr . � Msa . Coalcy B=ooks Mr . � Mrs . Edward Brooka , jr . Butler Charity Truat Carolyn Foundation Chsmpion Internatioaal Cotpotation Conwcd Fouadation Coopera � Lybrand Mr . � Mra . Thomas M. Croaby Deloitte , Haakins � Sclls Mr . � Mrs . john F . Donovan Dorscy � Whitney Mrs . Carl B. Drake , Sr . Carl B. � Chaclotte H. Drake joseph C. � Lillian A. Duke Foundation Faegre � Benson Clareace G. Framc Robert T. Gardner Family Harris Family Truat Hetsey Foundation Intcrttational Multifoods jostens Foundation, Inc . Mrs . Kate S. Klein Land O'Lakcs David � Pecrin Lilly Marbrook Foundation Moore , Costello � Hart john � Betty Myers Paul N. Mycra , jr . Foundation Northern Statca Power Compaaq Northwestc=n Natioaal Life Inaurance Companq O'Connor � Hannan Old South Church-Boston Peat , Marwick, Mitchcll � Company Piper , jaffray � Hopwood Rahr Fouadation Betnard g jaac Riddcr Robert � Kathlcen Ridder Robins , Zelle , Larson � Kaplan The Rodman Foundatioa Mr . S Mrs . Alan K. Ruvclson St . Paul Pioneer Press � Dispatch Sears , Rocbuck g Company Shepard Family j . L. Shiely Company Thc Southways Foundation Twin City Federal Savings � Loan Aa�sociation The Valspas Foundation Wcbb Company F . T. Wcyerhaeuser Trust Margacet L. Wcycrhaeuaes Chsritable Trust Mr . � Mrs . Wheelock Whitney ��� �� � ORDWAY MUSIC THEATRE • Board of Directors Judson Bemis David M. Lilly 4900 IDS Building Finance and Operations 80 South 8th Street University of Minnesota Minneapolis, MN 55402 301 Morrill Hall 100 Church Street, S.E. Minneapolis, MN 55455 � Kenneth N. Dayton Oakleaf Associates 419 Peavey Building Mrs. Elizabeth [d. Musser Minneapolis, MN 55402 Minnesota Landmarks 75 West Fifth Street St. Paul, MN 55102 Carl B. Drake, Jr. The St. Paul Companies, Inc. 385 Washington Street John H. Myers St. Paul, MN 55102 American National Bank Building Suite 2105 370 Minnesota Street C. E. Bayliss Griggs St. Paul, MN 55101 N. F. Winter & Associates 325 Cedar Street St. Paul, MN 55101 John G. Ordway, Jr. 1000 Pioneer Building 336 Robert Street Philip B. Harris St. Paul, NL'�1 55101 2404 IDS Building 80 South 8th Street Minneapolis, MN 55402 G. Richard Slade Minneapolis College of Art & Design 133 East 25th Street Mrs. Sally O. Irvine Minneapolis, MN 55404 495 Portland Avenue St. Paul , MN 55102 Mrs. Mary �a. Vaughan 1700 Mount Curve Avenue Allen F. Jacobson Minneapolis, MN 55403 Industrial & Consumer Sector 3M Company 3M Center St. Paul, MN 55144 Officers Carl B. Drake, Jr. Chairman G. Richard Slade President Richard D. Snyder Vice President/Executive Director Henry P. Blodgett, Jr. Vice President Frank D. Marzitelli Secretary Thomas J. Prokosch Treasurer ' �F �y-y� A bi 11 for an act �r'± relating to the City of St. Paul , authorizing the issuance of a license for the sale of intoxicating liquor at the Ordway Music Theatre. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. [ST. PAUL, CITY OF, ORDWAY MUSIC THEATRE; LIQUOR LICENSES.] In addition to the licenses now authorized by law, and notwith- standing any provision of lavr to the contrary contained in the charter or ordinances of the City of St. Paul or statutes applicable to such city, the city of St. Paul is authoriied to issue an "on sale" liquor license to Ordway hlusic Theatre for the premises knovrn as the Ordway Music Theatre, Fifth and Washington Streets, Saint Paul , Minnesota. The license so authorized may, with the prior approval of Ordway Music Theatre, be used � any place on the premises of the music theatre and by any person, firm or corporation who has contracted for the use of the premises for an event or ' � � a caterer of such person, firm or corporation approved b Ordwa Music Y Y Theatre. The license may be used by such person, firm, corporation or caterer notwithstanding the fact that such person, firm, corporation or caterer may hold "on sale" licenses in their own right. Sec. 2. This act shall become effective only after its approval by a majority of the governing body of the City of St. Paul , and upon cor�pliance with Minnesota Statutes, section 645.021. �_ ...._. , .. . . . - . � ..t�r••�r. .....+� w ��... .. . ,.. ...-e+:- -. . ... - . . . . . _. . .. . .._._ . . . .,. . ... . . . .�.-«,�.._. �...<..,� .._...,- -•- -°.......-.,.. - no r - � . . .. -':"y?::.. :.�,��. .....-�-..-.�..��... ...,. .,.,�,..... . . . .