Title
Latino Cultural Center Collaborative Fund (Ordinance S-46424)
Description
Request authorization for the City Manager, or his designee, to open a Collaborative Fund for the Latino Cultural Center at the Arizona Community Foundation and use $25,000 from the Office of Arts and Culture Operating budget for the required initial deposit. Further request the City Controller to disburse all funds related to this item.
Report
Summary
Through the 2001 City Bond program, funding was authorized to promote knowledge and appreciation of Latino/Hispanic cultures.
In 2016, the Phoenix Office of Arts and Culture secured the services of a consultant to conduct a Capital Needs Assessment and Feasibility Study (Study), including a management/business plan and evaluation of potential tie-ins with other cultural resources. In 2017, the Study's report was released and was based on extensive community input consisting of over 20 one-on-one interviews, site visits to arts organizations and facilities in Phoenix and surrounding areas, three public town halls, two focus groups and an electronic survey with 254 respondents.
In 2019, Mayor Thelda Williams created the Latino Cultural Center Ad Hoc Committee to make recommendations to the City Council about next steps, including possible sites for a center and development of a strategic plan, which will result in business and operating, programming, and partnership and fundraising strategies. The committee is charged with using the 2017 Study as its roadmap through the process.
In the 2017 Capital Assessment and Feasibility Study, a site was not selected. It included a hypothetical site layout showing a building area of approximately 22,000 square feet; 18,000 square feet of programmable outdoor space; and ample parking.
The Community and Economic Development and Planning and Development departments presented City-owned sites in and out of the downtown core. Sites in downtown Phoenix are more compact, urban and allow for smaller land plots that can be built up, while the "suburban" sites require a larger area, with a minimum of four acres to accommodate the square footage and parking requirements recommended for the site. Ultimately, four "downtown" sites were presented to the Site and Operations Subcommittee to review.
Gensler Architects did pro bono work this summer to show how massing can work for each location. Diagrams were presented, along with associated costs with each site, which come out to $600 per square foot, which is comparable to retrofitting other historic buildings such as those in the Warehouse District.
Ultimately, the North Building was selected by the Ad Hoc Committee on Sept. 23, 2019. The property is historic preservation eligible, but not designated as such. No upsizing is needed with water or sewer, based on current service levels. The streetscape could meet downtown code requirements without a variance. The cost to rehabilitate the North Building, along with additional funds for FF&E (furniture, fixtures, and equipment) to ensure the project would be occupiable as soon as possible, is estimated at approximately $12,056,800.
The Ad Hoc Committee requested the Parks and Recreation Board approve the Latino Cultural Center to be located at the North Building in Margaret T. Hance Park, with the understanding that if funds are not raised by Dec. 31, 2023, the use agreement would need to be reevaluated. The Parks and Recreation Board approved the request on Oct. 4, 2019, with the caveat that fundraising benchmarks will be reported to the board along the way. Procurement of a capital campaign consultant can start the planning necessary to raise the funds to rehabilitate the building, or other site as directed by the City Council. There is currently $997,902 in bond funds available to kick off the project.
Financial Impact
As financial planning commences, the Latino Cultural Center Ad Hoc Committee recommends opening a Collaborative Fund at the Arizona Community Foundation to accept restricted donations for the project. A Collaborative Fund allows unrelated individual donors who share a common charitable interest to enhance their impact by giving together. The Community Foundation would act as a repository for donations to the Latino Cultural Center where donors' gifts would be tax deductible.
The benefits of using a Collaborative Fund are: it enables giving in any amount by as many individuals towards the project, immediately once set up; the Arizona Community Foundation offers professional financial management aimed at growing the assets over time; and the foundation offers the administrative/back office support including tax and accounting services, paying invoices, tax acknowledgements for gifts to the fund, and online giving capabilities.
To open a Collaborative Fund, the City will need to make an initial $25,000 deposit to the Arizona Community Foundation. Funds are available in the Office of Arts and Culture Operating budget. As funds are raised, the Office of Arts and Culture operating budget will be reimbursed. There is an annual fee of 1 percent of the Fund's asset value (declining as assets exceed $3 million) or $500, whichever is greater.
Concurrence/Previous Council Action
The Land Use and Livability Subcommittee recommended on Nov. 20, 2019 by a vote of 4-0 that the Latino Cultural Center be located at the North Building in Margaret T. Hance Park, or another site to be determined, as well as recommended the City Manager, or his designee, to conduct a Request for Proposals to select a capital campaign to assist in the financial planning of the Latino Cultural Center. The City Council unanimously voted on the Land Use and Livability Subcommittee's recommendation on Dec. 4, 2019.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Office of Arts and Culture.