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
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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
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A►p y iVlavor: Date •.�R �� 14R� �►pproved by Mayor for Submission to Council
� BY
BuSHED AP R i 19a4
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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-
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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
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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.
�_
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