Loading...
HomeMy WebLinkAboutDocumentation_Miscellaneous_Tab 3_7/22/1994 c,vJw ' V ., c/ / The Members of the Downtown Redevelopment Committee, 9 10 ,/!/ The Village of Tequesta. 4 July 19 , 1994 . TIM t} 1 fU� , Dear Sirs, z O 199y VILLAGE Redevelopment Proposal MANAGER'S Downtown Tequesta. 'air. OFFICE Thank you for the invitation to attend your meeti ,.,.on Frid morning, which I received today. I enclose a package of d ents that it was my intention to present to your full Council. In consequence,the reference to the press release is inaccurate, and I await your view on when it should be published. I look forward to answering your questions. In summary, the documents set out the case for the redevelopment of the downtown center by Christopher's Village Foundation, in accordance with our master plan. You have wisely attempted to bring the Landowners together in one meeting, but without success. The major Landowner has sat on his land for many years, and has not at any time suggested that any development he would carry out, if any, would achieve anything resembling the ideas that you sought to implement in your own master plan. The other main ownership ' is still under a conditional sale contract, and I believe that the advice that you have shows that if it is concluded, it will be on the, basis that the new owner would do what he wanted to do, in his own time, and for uses that would almost certainly prevent the comprehensive plan being effected. You now have to make a decision. Either you will support the implementation of the master plan, or you will not. If you don't, the consequences are not difficult to foresee, and are unlikely to prevent the. present trends in Tequesta. We believe, as did PMG Associates, that you have to declare the downtown area a Community Redevelopment Area. That does not mean that you have to take all of the risk, nor a risk that is more than you can cope with. It will allow you to negotiate in a way that is appropriate and fair to all the residents of Tequesta, not just the principal Landowners; and not effectively under duress, which is the current situation. Under a CRA you will be able to retain control to the extent that makes you feel comfortable. The Act gives you the right to comprise the entire board or not as you think fit. You have the right to adopt a master plan, and to implement it directly through the CRA, or to appoint a developer to control the development for you under the ultimate control of the CRA Board. 701 HPlin^ Oriv:-. r .):in1Pr. FInrir!r: 33477 + 407-744-7796 + Fax 407-747-0823 Page 2. cont 'd. . . We propose that you appoint us in whichever way makes you feel comfortable. We will either become the Master Developer or take on the management of the CRA on your behalf, designating Joe Benjamin to represent us. Fundamentally, the only differences consequent on that choice will be the method in which the project is financed, and that the donations necessary for the Tequesta Institute for the Arts will be outside your control in the first case, but within it in the second. Please bear in mind, that until you give a decision, that clearly shows to all concerned that you are going forward with this project, it is not sensible for us to try to bring in those entities that can make it happen. Everyone is waiting for you to say, "Lets Go! " Now is the time for you to do so. The general support for our plans has been more than any of us could have expected at this time. We have worked for more than twelve months on the project, and have invested a very considerable amount of time and money into it. We will find it difficult to retain the enthusiasm of our helpers and supporters if we continue to be left in this uncertain state. You have made a number of wise and courageous decisions in the past, and it is appropriate that you now make another. It is our belief that support for our proposal will bring you lasting praise for your initiative and foresight. We look forward, optimistically, to your immediate decision to. recommend the full Council of Tequesta to accept our proposal. Your sincerely, /A11/\‘(00„/TAN) Joe Benjamin Chairman of the Board TABLE OF CONTENTS 1. Chairman' s Narrative. 2 . Redevelopment Plans. 3 . Appendix A. A narrative description of the principal changes to Christopher 's Village initial Redevelopment Plan. 4. Appendix B. A general description of the financial implications of the project. 5. Appendix C. Concept Statement for Tequesta Institute For The Arts. CHRISTOPHER"S VILLAGE A PROPOSAL FOR REDEVELOPMENT BY CHRISTOPHER"S VILLAGE FOUNDATION Introduction A lot of water has passed under the bridge since March 1st, when we first presented our proposal to you, the Village Council. We have found that you, and the public at large, have been very receptive to that proposal, and you and your officers have been very constructive in assisting us in moving this project along. Press comment has been surprisingly favorable, and the general response from potential users, donors and investors has been all that we could hope for. Now it is time to come to grips with the implementation of the project. Before suggesting how we would propose to do that, it may be as well to reflect on what brings us together, and it' s implications. The Village of Tequesta and Christopher's Village Foundation share a common goal. The goal, simply stated, is to implement a redevelopment program for downtown Tequesta that will revitalize the downtown and create a favorable framework in order to encourage the establishment and development of commerce, trade and culture, and at the same time enhance the quality of life for the residents ' of Tequesta, and of the surrounding areas. Until our approach, a number- of both incremental and comprehensive approaches had been conceptualized and studied in recent years, in an attempt to determine the most appropriate way to achieve that goal. None of these have proved feasible from a market point of view. The most recent proposal by Christopher's Village Foundation embodies many of the elements which are representative of the highest standards of community life styles. Village officials and numerous community leaders have responded favorably to the proposal. Additionally, the proposal has had the effect of increasing public awareness of the critical need to take some action which will halt further deterioration of Village assets and reestablish the economic and cultural vitality of the community. Despite heightened concerns, as with any endeavor, if a program of redevelopment is to succeed there have been and still are many challenges to be met and obstacles to overcome. Significant among these challenges has been the search for an optimum risk method of financing that can be implemented to initiate and complete a suitable redevelopment plan. • cont 'd. . . Page 2 The Community Redevelopment Act and Tax Increment Financing Clearly the cost of a redevelopment program should be borne by those who stand to benefit - the local government and its citizens, ' and elements of the private sector. Although a number of strategic financial alternatives exist, tax increment financing would appear to be the most promising approach which could be used by the Village to secure the needed funding, and I am pleased to note that the Village Council 's Consultants have drawn, so strongly, the same conclusion. Financing community redevelopment by tax increment financing is authorized by Chapter 163 , Part III, Florida Statutes, and is known as the Community Redevelopment Act of 1969. The act was created to assist counties and municipalities in eliminating and preventing slum and blighted areas that are detrimental to the health, safety, and welfare of the residents of the state. In 1977 , the Legislature expanded the act to provide for the use of tax increment financing through the creation of a redevelopment trust fund. In essence, authority granted by the Community Redevelopment Act permits the Village to issue bonds and to create a Board to be known as the Community Redevelopment Agency. This Agency will have absolute and complete control over the Redevelopment Area. It would seem that the bonds, subject to certain conditions being satisfied, can be issued directly by the CRA. As I will explain a little later, such an issue will not, necessarily, affect the level of bonding to which the Village is limited under other governing laws, and since the cost of financing those bonds will be met by the future tax increment, which would not otherwise exist, it will not affect the revenues of the Village, as they are now enjoyed. Nor will it limit the power of the North Palm Beach Water Control District to carry out infra structure work, including the provision of parking, roads, sewers, landscaping for the benefit of the area, and to separately fund those works through a bonding issue, the cost of which would be recovered by assessment on the area over a period of years. By combining these powers, the front end costs associated with the redevelopment plan; to acquire real property; to install utilities; to construct roads and streets; to build an institute of higher learning, can all be met. These activities, once commenced, will stimulate the interests of private developers and traders, to construct and locate businesses in these areas, thereby strengthening the economy and increasing the assessed value of real property. • cont 'd. . . Page 3 There seems no reason why the CRA cannot, in addition, construct the new premises required by the Village. Under the Community Redevelopment Act the CRA will be able to expend tax increment financing dollars to construct or finance the new Village Administrative Buildings, upon a showing that such buildings are an integral part of, or are necessary for carrying out the CRA's redevelopment plan. To the extent that the money borrowed by the CRA is secured with Village Revenue streams, other than the CRA's tax increment, the Village 's future ability to borrow money for non-CRA projects would be evaluated by third-parties, taking into account the prior commitment of all other revenue streams, including those committed as security for CRA projects. However, once the tax increment materializes, it can be used to replace the security provided by the other Village revenue streams. Bonds issued under section 163 . 385 of the act are specifically excluded from indebtedness normally incurred by statutory debt limitation acts. Authority and management of the community redevelopment program will rest with a Community Redevelopment Agency (CRA) created by the Village. The CRA may be a separate board of commissioners appointed by the Village, or the Village Council may adopt a resolution declaring itself to be the CRA, or some combination of the two. Following the approval of a community redevelopment plan, a redevelopment trust fund will be established for the CRA. Funds allocated to and deposited into the trust fund will be used by the agency to finance or refinance the community redevelopment activities undertaken in accordance with the approved plan. Future revenues for the' trust fund, which will be used to repay bond borrowing, will be obtained by allocating all monies received, as a consequence of the increase in taxable assessed value, from the area covered by the plan of redevelopment. It is recognized that using the tax increment, as an economic tool for financing redevelopment, is not without risk nor disadvantages, and PMG Associates have brought your attention to these examples. There are a number of factors which must be given special consideration if risk is to be minimized. Of particular importance are: 1. The formulation of a redevelopment plan that will meet the desired goal of the Village and contain most, if not all, of the features necessary to ensure community acceptance. cont 'd . . . Page 4 2 . A sound economic feasibility, analysis of the redevelopment plan, including an accurate projection of the incremental tax base with an emphasis on the' scale and pace of development and the stability bf the anticipated tax rate, and 3 . The careful selection of local government officials and/or competent and dedicated members of the community to serve on the CRA. Although the tax increment financing would appear to offer a feasible approach to securing the necessary funds, there are two major concerns of the Christopher 's Village Foundation. The first is that the emphasis that will be placed on commercial and civic center redevelopment must not be allowed to override the importance of establishing an institute for the arts. The second is the need to secure, separately from the cost of establishing the Institute, a perpetual annuity, or income that will be available to support the Institute after it has come into being. These concerns, critical to achieving our common goal, must be addressed. Proposal To this end , it is requested that you, the Village Council of Tequesta, work with us, the Christopher's Village Foundation, to ensure that the Institute is constructed, and that provisions for it's continuance are properly made. An arrangement with the Village should be made that permits the Foundation, through it's " "earnings", to make significant financial contributions to the Institute. Specifically, it is proposed that Christopher's Village Foundation be selected to facilitate the Village redevelopment plan. The Foundation would become the developer of record operating in agreement, and in accordance with directions of the Board of the CRA. It is requested that the Village appoint a body to negotiate terms with CVF which will safeguard the Village from unacceptable risk, but allow CVF to pursue the implementation of the whole project, in coloperation with other Developers, and to organize and . effect the establishment of the new Arts Institute. It is not suggested that the decision to adopt a CRA implies that a sole developer be appointed. The Act allows many variations, including piece meal development, that is development of parts by individual owners. It must be born in mind, though, that such development is only successful where the entire land is attractive to each individual developer for his required use. In this case there is an overall plan. It can only be achieved if the development is specifically carried out in accordance with the plan. Some owners may be contented to conform, but others cont 'd. . . . Page 5 certainly will not. What is more, proceeds of areas of high value will need to be used to develop areas of low value. Comprehensive development is the only way to deal with this problem, and that is why the Act gives Authorities the power to develop in that way. The proposed role for the not-for-profit Christopher's Village Foundation would provide that all revenues earned for professional services, and all surpluses created by the redevelopment process, over and above that required to meet the costs of the development will be held in trust for the benefit of the Arts Institute, and in effect will become a continuing source of funds to be used to sustain that Institute. PMG Associates have, in the main, confirmed that the economic arguments underlying CVF's development plan are sound in every way. The Foundation is therefore confident that it will be able to satisfy all reasonable financial requirements of the Village without placing further financial burdens on the main body of tax payers in the Village of Tequesta. Advantages of the CVF Proposal In addition to maximizing overall operating efficiency for the Village redevelopment program, the Foundation's proposal offers several advantages to the CRA. These advantages include: 1. CVF has already produced a well designed conceptual plan which can be adopted as the basis for the CRA. This plan has received considerable public support, and it's architectural excellence has been well noted. 2 . CVF has already consolidated a group of a dedicated, experienced, and innovative professionals that share a common goal with the Village. 3 . CVF is a group that has developed an operational concept and a design for an arts institute that has taken into full account the desires of the two principle artistic organizations of Tequesta, the Lighthouse Gallery and BRITT. This will become a keystone for redevelopment and -a prized community asset for current and future generations. 4 . CVF is a group that has actively promoted the redevelopment plan and the institute; established relationships with commercial, arts, and civic organizations; and obtained support from the community at large. cont'd. . . Page 6 5. CVF is a group that has evaluated numerous financial alternatives for redevelopment and the construction and continuance of the institute, and devised strategies to maximize the prospects for early returns and optimum risk for both public and private involvement. 6. CVF is a not for profit organization. It's only legal aims are to bring into being an Arts Institute within the Village, and to sustain it financially in perpetuity. CVF would not be able to take profits from the development as would a developer from the private sector. "Surpluses" , or profits, in the sense that a normal private sector operating corporation would think of them, will all be reinvested by CVF into the project and thence to the Institute. It is for this reason, above all others, that CVF can truly say that they have the same vested interest in this project as the Members of the Council of the Village of Tequesta. 7 . CVF has made reasonable attempts to discuss the project with the principle landowners concerned, and in a number of instances have reached agreements and support. CVF have every intention of negotiating a basis of co-operation with existing owners, where such existing owners want to carry out development. The only restriction, CVF would wish to reserve, is that all development must conform with the basic concept of an art's village. The conceptual plan can be changed so long as the basic principles adopted in it' s design are not lost. 8 . CVF has made every effort to liaise with local trade and professional interests, and would anticipate working closely with them. Additional Considerations In concert with its role as developer, the Foundation will continue to evolve and define operational aspects of the institute, unify and expand local and regional interests in arts and architectural education, and establish an appropriate legal structure for the institution in a timely manner. It is recognized that the surplus revenues "earned" by the Foundation in facilitating the redevelopment plan will not totally meet the future financial needs of the institute. A broad based fund raising campaign will be initiated by the Foundation to secure a sufficient endowment to be held in trust to construct and sustain the Institute. cont 'd. . . Page 7 CVF has already interviewed a number of Nationally operating, reputable professional Fund Raisers. Assuming that the Foundation is now given the support of .the Village, it is intended to make a firm appointment in August so that the campaign can be commenced during the latter part of 1994 . A selection process has been commenced to fill the position of Development Director of the Institute. It is planned that he or she will be appointed at about the same time as the Fund Raiser, so that their efforts can be immediately integrated . The leadership role proposed to be undertaken by Christopher' s Village Foundation, and the innovative concept of "earning its way" by providing productive and tangible services, are unique among not-for-profit organizations. Recognition by the Village that it is more advantageous to allow "surpluses" to be used directly to further municipal purposes, rather than taken as "profits" in the private sector, can only be considered as progressive and commendable thinking by the governing body. Subject to the matters raised above, it would appear that the Village can benefit considerably. The burden of financing, and then producing, their needed new facilities can be taken from them by the CRA process, and effectively by the Developer, Christopher' s Village Foundation. The Redevelopment Plan • Today, we are taking the opportunity to release our latest version of the plan which we are asking you to adopt as the core of the Master Plan for the CRA. You will see that we have amended it to take into account some of the comments made since it was, originally released at the beginning of March. The Fire Station, and the Police Station have been omitted. This is in response to the generally expressed opinion, that the Villagers would like to see those uses retained, but improved, on their existing sites. This change has allowed an increase in the area allocated to homes for sale, and also has allowed for an area to be allocated for the provision of units for artisan workers use. The current plan allows for the integration of certain land already owned by the Village. In itself this will be beneficial, since the cash that will be released on the sale will be available towards, and possibly sufficient for improvements to the Water system, already being considered by the Village Council Water Department. It will certainly improve the area to the south of Bridge Street to the advantage of the business users there. cont 'd Page 8 In preparing the new plan, we have taken the opportunity to incorporate a new private car park for Saint Jude ' s Church. It is sited immediately to the north of the Church and as close to the existing entrances as we can reasonably locate it. It should prove a major convenience to the Church, which after all will be a major focal point of the new Village Center. In consequence of these changes, a reasonable assessment of the tax increment benefits produces an increase approaching 25% of the figures put forward by PMG Associates. At the same time, the amount of 'CRA bonding that can be covered by tax increment funding will be increased by the same 25% These figures use the same method of calculation as PMG Associates have adopted in their report. It is worth noting, and it is certainly gratifying, that a number of owners, and potential owners have now been stimulated to consider the possibility of doing something. There has been little evidence of such interest in the past few years. It would be the hope and intention of CVF that, as the Developer of record it will be able to negotiate agreements with those parties, so that they will be able to carry out such development as they have -in mind, subject to that development being in accordance with the master plan. To us, the master plan is a living thing, and can and will be adjusted where such an adjustment is shown to be advantageous. If interested parties wish to see changes, and can justify them, we will arrange for those changes to be affected. Conclusion Finally, I would like to refer to the comparisons that have, quite naturally, been made of Christopher's Village and the Mizner Center in Boca Raton. In so far as that comparison relates to the architectural treatment, this Foundation is flattered. However, in most other ways comparison has no relevance. In particular it must be evident that the effect of this project on Tequesta will be substantially greater than that of the Mizner Center on Boca Raton. The beneficial force the project will exert on the values of surrounding properties, which in this case means virtually all the commercial properties of Tequesta, will be considerable. The population will increase by approaching 25% Nothing like that could be stated for the Mizner Center, and it would have been naive to think that Center could fundamentally change the nature of such a large and successful commercial center as that of Boca Raton. Perhaps the disappointment of the Boca Raton Council with the size of the tax increment that has been achieved is the consequence of unreasonable expectation. The challenge is both to the Foundation and the Village of Tequesta. Together they must make a success of this endeavor. There are few opportunities such as this, where a common goal is so cont 'd. . . Page 9 unified, and where an opportunity to join in partnership can provide such wide spread and lasting benefits for the community. It is hoped that you, the members of Tequesta Village Council, will have the foresight and courage to take up the challenge. • \�L-.-4 4. V ii.,, 2a .77 , 1 I .--4-\ . .1;:fy..e....e.., 70:04, . ,,.:04) J.; -2 'k.' ° .,,\NI 'al°16 *-,../.,..—' ee "Ito, agoD. ... . -.'"' E \ ......,..--...:\ ; !. : , .. t \ L.— _..,— , , •. 41\ 1.. 4. ` \ � 'v-" �- ..1-r1. ',` _A 2 y.r `,� Ci.:�{+,.j.![4 byyoV_Qa i.'• s ` -1' -- �,.+� ,,,y' Cat ' •,' •::e-. ': CC All 1. \. :` 4 IT ,.- .i•r 1� �'MC' y 'l Alm•• \ 11'• ''. '•-, . \ ,\ ..‘ c . .....-75 ,F,,,,,i , -.,---..- r.: NO .—r:-: la ,' \�� -4. �./ —e-Ac,—e ^r .'`.•.. no —i',- rim&. stz4 1— ', '^, L. rt:.s`I�_�C� t`. .lam 4 ' n ''1 II:, 11 p �` : LI • 1 \\ . , '¢k. ah •�e ••. • "� i 14 �" Y �, : 4� J1J ` .., it :-:`.40°,,...,,:•.'-'.'---.1:„. oe , �a . , SO q ,:...,,,::,:,-104.•.?I':71 — : .._.o.a .....�..._.u.._..... • 4 T. 7 . �.. ',,• •mac, ..-::.,„.i_.....,�.4 INtr.. \ ' `'.14e,:ci $ ' ' i a 0 La b al yams.Ilaw '' , N ti. .7 [-.--,.._._ .ktr.".."...e'A "°` 111 LJ sans�.. 'zyis, 3''yc, I f✓ • a. ca 3: I THE VILLAGE OFTEQUESTA ✓�..�' ' 7 . . .. ;#I ,�,"p: : tri. r: pi. �. fCop Linder�Ie 0�%� .^,o\ 1 ILiJ, e , s :: o1II1II1 II 7 -(tip �''!,�C ` ! L• j `. eye RRI...T._�rF.ROAD - J . eI I4y I 1c Conrepyual Plan V.��•Zr. �• r , % , ; .1\•—• •—— . `• — IH�N. . I•-� 1n nI� I nu • j j j \\ • �,--- I `Jlt .. r- .- \ f.Akz,.. \ i im-Nst 1 "Umil,,.\ 4Aiit, . 1— \ 1 !I11 , ? ...t vimkl\l ‘.--- TIF \. I , ,: r 1'\ , .', •i, 1 i it iv* ki ll 11 �I ...d►_ - ._.. t -�7.T1tra IMINEllWt �( Y I I s � 'It-S, itr rtr_! ± M- • ti iiiiriIi liiT'=i D��.A., .fir,'.;g.�s,n,ai iq' �,:� " . --.••rr�- , rI 1,„,„, 11,1v48 P-7L '--riri � iI �' � I .s _ a. _ U. WI 11 •:n�� - 1N �f1L��rr�a:'� �/ ems• \I� L��+.!�i —�iI iliallit; ram_ + ���,i �". i��11\ --- ve=111 • il►ln 6' biniuuo r.: �i _Ill f_ tei I III,YI �J 1 -- • �.L, ter/ �-' ', ''''' �1;�� ��/�- — '* I '' ill/.11111 G U y� / Iv O �( � ,,i1-r O Q 1 ��1 FI .. . �r 3 3bo '`� I 9 o. -1 ff: The Tequesta Institute For Arts THE VILLAGE OF TEQUESTA Palm Beach Counts.Flonda • • Cope Linder Associates arthu.n..Una..A.cn.,nu.Pymrn • APPENDIX A Principle Changes to the initial Plan of Christopher' s Village Principle Changes The latest version of Christopher's Village takes into account comments that have been made since the original plan was released at the beginning of March. The Fire Station, and the Police Station have been omitted. This is in response to the generally expressed opinion, that the Villagers would like to see those uses retained, but improved, on their existing sites. Provision has been made to allow the Post Office to continue in it's existing location or to move to another, if it's Management prefers. The Site has been extended to the north and south. The number of homes for sale has been substantially increased to about 250. A provision has been made for the construction of Artisan's workshop/studio units. These will be predominately workshops each with integrated living accommodation. The provision for the building allocated for hotel use has been modified to allow alternative use in case the view expressed by PMG Associates concerning demand proves to be correct. A new private car park for Saint Jude's Church has been incorporated. It is sited immediately to the north of the Church and as close to the existing entrances as we can reasonably locate it. It should prove a major convenience to the Church, which after all, will be a major focal point of the new Village Center. Schedule of Uses. 1. Retail. This use class will include shops, restaurants, banks, realtor offices, etc. The total provision will be approximately 150,000 sq.ft. Rehousing of existing tenants and owners will take up some of this accommodation. Appendix A.cont'd. . . Page 2 2 , 3&7 . Retail Rental Units. Aapartments will be sited over the shopping frontages. These apartments will be served by elevator, and built to a high specification. It is intended that they will be suitable for people in the early part of retired life, and also those people who will enjoy living in a bustling downtown environment. 4 . Retail Offices. These will be good quality offices, to be used for general purposes, and will be sited above the shop units. Entrances will be appropriately placed along the frontage to the street. It is anticipated that tenants requiring smaller than normal spaces, particularly those that serve the local community will be accommodated here. 5. Saint Jude ' s Church. The views to this imposing building will be opened up as the major focal point of the development. 6 . Church Car Park. Provision has been made to place a substantial new car park to the north of the Church for the exclusive use of Saint Jude' s Church. It will accommodate approximately 200 cars, and will be sited in very close proximity to the existing Church entrances. 8 . Hotel. A new hotel is planned to be sited above the shops to the north eastern frontage of Tequesta Drive. This hotel is anticipated to be constructed along lines utilized in certain European university campuses. Rooms may be used for the benefit of the students during term time, but by the public at large at others. It works particularly well for extra-curricular institute courses. In the event that there proves- no demand, the flexible nature of the conceptual plan will allow an alternative use, probably residential. 9. Arts Institute. See Appendix C. 10. Theater Complex. See Appendix C. 11. Office Building. A two story building to be constructed to very high specification for general office use. 12 . Car Park. This two level car park structure, for general public use, will provide space for about 250 cars. 13 . City Hall. A new civic building to meet the requirement of the Village Council,as and when they are established. Appendix A, cont'd. . . Page 3 14 . Library. A new building to be built to meet the requirements of Palm Beach County. It is anticipated that it's size will be slightly larger than the present County Design, and it will be integrated to form part of the new Civic Complex. 15. Banquet Hall. A new facility of about 5, 000 square feet to be operated by the Village for public and private meetings and functions. It will be designed as part of the Civic Complex. 16 . Public Works Depot. A new building to be designed to provide accommodation that meets the requirements set out in the Needs Study of 1993 . 17 . Existing Post Office. Since it has not been possible to get a response to any enquiry made of the Post Office Management, provision has been made to leave it in it ' s present location. However, it is anticipated • that the present facility is inadequate, and two or three other locations, forming part of the Civic Complex, can be made available to meet their assumed requirements. 18 . Medical Center. A medical office building. This is intended to provide an emergency surgery unit that can deal with minor injuries and operations. A department of dental surgeries for practitioners with full modern facilities. A department for general and specialist practitioners. A department for opticians, both specialist and general. Accommodation for chiropractors, with appropriate facilities. All existing practitioners in the area affected by the project will be given priority in the first instance. 19. Adult care facility. A facility to be designed in accordance with the needs of the area. It is anticipated to be a building of high quality with high specification appropriate to the Village of Tequesta. 20. A day care center. A facility to cater for the general parenting public. Appendix A, cont'd. . . Page 4 21. Artisan Studios. A complex of buildings, designed to be used as workshops, with and without living accommodation, to form a working environment associated with and ancillary to the Arts Institute. 22 . Eco Site. Existing preserve. 23 . Rental Apartments. 174 apartments to be built to accommodate students and staff of the Institute and Medical/Adult Care Complex, as well as people working in and around the new complex. 24 . Single family homes. The development to be planned will provide sites for about 250 homes. The section will be laid out in the form of a Mediterranean Village. 25. Pool and Clubhouse. This will form the entrance to the Mediterranean Village, and will serve the homes within it, as well as the retail rental units. 26. Water Treatment Site. This complex exists. 27 . Designated open space. 28. Aged Care Facility. Provision has been made for an extension to the Adult Care Facility to be constructed at a later date, that would allow fuller nursing care to be given. APPENDIX B Financial Implications of the Christopher' s Village Project The core development, that is Christopher's Village, will involve a capital investment in excess of $100 million. Taking into account improvements to existing buildings that will be included within the CRA, but lay outside the core development, the total investment anticipated will probably range between $120 and $150 million. The majority of this investment will be put up by the commercial investment fraternity. In general, it is anticipated that the amounts committed will be in the following ranges. 1. Something up to $10 million by North Palm Beach Water Control District (NPBWCD) for infra-structure, landscaping and car parking facilities. Note: This will be separately funded by NPBWCD through a bond issue to be met by an assessment on the property owners in Christopher 's Village. Owners not in Christopher' s Village will be unaffected. In assessing the economic viability of the project, allowance has been made for "this special cost. 2 . ' The CRA will raise, by bond issue, approximately $12 million to give incentive to developers, in accordance with the purpose of the Community Redevelopment Act; and to build new, and improve existing administrative facilities to meet the Needs Assessment previously put forward in 1993 . This incentive will allow the endowment of the land need for the Arts Institute. The repayment of the bonds will be met by the tax increment created by new development. This figure is within the limit that will be obtained by using the PMG Associates method of calculation on the enlarged development. 3 . Private donations of $20 million to establish the art institute. 4. Commercial investment in excess of $60 million to effectively complete the rest of the development shown in the core development plan. 5. Commercial investment of something in excess of $20 million by existing owners to improve by refurbishment and/or possibly redevelopment of existing properties. 6. The Village will sell the northern part of the Development, at present part of the Water Department land, as well as the north part of the land south of Bridge Street for value. 1' STATEMENT CONCEPT :.J` ��\ i • •\ • ,,,.,�a'.1<.'�`t ti. ?r. f \.~ ! .t +`yam. •�.r• r. di, I. • • 3•.T :•S.,•$., t �'.'"'y. ;a b•..•`• 1 i.s%riot 3•y% 1 -.•t yz l • ,: _ ,;;; .< •_: r fir. .... letrei't•".`y ...'• t'•••!• yam , ``%1_.., gin,qt ifra�( • y, .2'• ' \: .`Y • �: { .j. -tiro . _ •rz wit &.'.iWS\ '+ �l 4` .. • -> z••a• x .may . Y:1�...(;.4��.t `•� �l I ?i r'r'� _l yj v ram• :iw ! `,•o4,,y.. •• - 4- 4 • .h '?�3 „,„ ."N..'< < ti.. r 4 i. � • ' � t '$'. - ti4 1te .0 • r - ,` µa h, � - 1:4„! 11W pt Tom' ^r 1 •" '�r il4A-• -..:-..- ,,,,- • ,•• • --' • : 4"-- ._rilic434. i d. t -.g , I. i....7.w._.! ..,:,...s_4......' - .: .Ii� �.~,'4. x ma's.' . ,�3 .: .„a' >,...V:--•-•.-• ''. Tequesta Institute For The Arts Respectfully submitted by. the Institute ' Committee of Christopher's Village Foundation, Inc., May 31 , 1994: Robert Denning ` Victor Oraham Richard Kristensen Fred Landrum TABLE OF CONTENTS HEADING PAGE NUMBER I. Introduction 1 II. Disciplines 3 III. Support Areas Serving All Disciplines 5 A. Overview 5 1. Computer Resource Center/Library 5 2. Cooperative Program 5 3. Core Studies 5 B. Computer Resource Center Vs. Traditional Library 5 1. Trends 5 2. Computers and the Arts 6 3. Electronic Messaging/Bulletin Boards 6 4. Library Resources 6 5. Implications Today and Tomorrow 7 6. Planning Concerns 7 7. Success 7 C. The Cooperative Experience 8 D. Core Programs 8 IV. Associations Regional, National, International 9 A. Overview 9 B. Co-op 9 C. Master Classes 9 D. Associations . 10 V. Management and Planning to Ensure Success 11 VI. Pre-Construction Instructional Programs 12 VII. Planning Projections 13 Schedule "A" - Projected Enrollments 16 CONCEPT STATEMENT TEQUESTA INSTITUTE FOR THE ARTS I. INTRODUCTION The Institute at Christopher's Village shall be a model for arts and related studies. The model for the Institute can be described as an "umbrella" under which entities providing instruction in the different courses of study shall be coordinated and which shall provide administration adequate to insuring that the whole functions to provide students with the highest quality education. The current model envisions the cooperation and participation of the Lighthouse Gallery and the Burt Reynolds Institute for Theater Training (BRITT). The model incorporates the successful existing continuing education program in place at the Lighthouse Gallery, as well as the training program underway at BRITT. We view these programs as essentially portable, and will provide an initial enrollment under the Institute umbrella when the first phases of construction are completed. By way of their participation in the Institute, both BRITT and the Lighthouse Gallery will gain an unprecedented opportunity to enlarge the scope of their current programs to encompass the different study tracks described below, as well as international growth through proposed foreign study programs. Additionally, the individual identities of the Lighthouse Gallery and BRITT will be preserved. Each will have its name prominently displayed and will continue to refer to itself as a separate entity. Each will maintain its own internal structure, boards, etc., and will further continue to operate as it has in the past; the only difference being that the educational arm of each entity will work interdependently with the Institute board. Most importantly, both BRITT and the Lighthouse Gallery shall be represented on the Institute board. With regard to revenues traditionally derived from the entities' education programs, our model provides for a sharing of fees between the entity and the Institute. The Institute will work closely with the entities to work out financial specifics in a way that is fair and that will insure the smooth operation of the Institute. Revenues derived from each entity's other enterprises shall be the entity's alone. Through the umbrella and additional studies provided, the Institute will seek to provide instruction for students who are dedicated to professional careers in the fields of dance, music, film, television, theatre, fine and applied arts, arts management and architecture. In addition, the Institute will encourage those individuals who wish to pursue personal interests in the arts by providing continuing educational opportunities in the subject areas of dance, music, theatre and fine and applied arts. 1 Drab - May 31. 1994 We envision this educational enterprise as private and independent, and will provide opportunity for students based on talent and aptitude rather than on ability to pay high tuition costs. Institute students will be able to select programs of study within three educational tracks or areas: 1. The Continuing Education Program will serve the personal and recreational interests of students with a wide range of courses within the arts. (Much as the Lighthouse Gallery provides currently.) 2. The second track, called Professional studies, will offer certificate programs varying in length but up to two years of study for students desiring professional employment within the arts or architecture. A system of three or four credits per course will be used. 3. The third program, Academic Studies, Area will lead to a three-year certificate of Academic Achievement. This program serves those students who wish to pursue, through transfer, a BFA (Bachelor.of Fine Arts) degree, a B.Arch. (Bachelor of Architecture) degree, or a B.S. (Bachelor of Science) degree. Again, a system of three or four credits per course will be used. Students would be admitted to the Professional and Academic areas of study through auditions and interviews. Demonstrating talent and aptitude will be fundamental in the admissions process. Criteria will be established by the Institute and the host entity. We will be exploring and defining the annual instructional calendar, but at this time we plan a structure based on three 15-week semesters -- Fall, Spring and Summer. The general instructional program and suggested phasing timetable follows in Section II, Disciplines. • • Draft - May 31,,1994 II. DISCIPLINES September 1997 -- Initial course offerings FINE AND APPLIED ARTS 1. Continuing Education for personal recreational purposes and enrichment. 2. Professional certificate programs (up to 2 years) minimum 60 credits. 3. Academic -- leading to transfer and BFA (3 year) 30 Liberal Arts credits, 60 credits in major. THEATRE, FILM, TV 1. Continuing Education (Theatre only; i.e., Community Theatre Seminar). 2. Professional certificate program (9 months/Burt Reynolds Institute of Theatre Training) in theatre. Master Classes and Performance Option* 3. Academic -- leading to transfer and Bachelors Fine Arts (3 years) 30 Liberal Arts credits, 60 credits in major. ARCHITECTURE 1. Continuing Education -- none. 2. Professional certificate program (2 years, 60 credits). 3. Academic — leading to transfer (3 years) and Bachelors Architecture - 90 credits. ARTS MANAGEMENT -- Fine Arts and Theatre 1. Continuing Education -- none. 2. Professional — Certificate program (2 years, 60 credits). 3. Academic--leading to transfer(3 years)90 credits to Bachelor of Science. 3 Draft- May 31, 1994 September, 1999 - Additional Course Offerings MUSIC 1. Continuing Education -- yes in areas to be determined. 2. Professional certificate -- Master classes and performance option.* 3. Academic -- 3 years to Bachelor Fine Arts (30 Liberal Arts credits, 60 major credits). DANCE 1. Continuing Education -- yes in areas to be determined. 2. Professional certificate -- Master classes and performance option.* 3. Academic -- 3 years to Bachelor Fine Arts (30 Liberal Arts credits, 60 major credits). The above general outline of arts and architecture instruction will be further defined as we continue to explore, research and develop. Curriculum consultants are working with us to determine specifics. Also, visits are planned to potential transfer institutions so that articulation relationships can be facilitated and developed. The information below relative to support areas for the various disciplines is important to note. With innovation in the following resources, we will be able to produce well-prepared students ready to accept the challenges of the twenty-first century. *Performance Option: We will seek to develop professional resident companies in theater, music and dance. Students will be able to earn credits by being performing members of the resident companies of the Institute. 4 Draft. May 31, 1994 • III. SUPPORT AREAS SERVING ALL DISCIPLINES A. OVERVIEW: Part of our uniqueness can be seen in the development of three specific support departments serving all disciplines. 1. COMPUTER RESOURCE CENTER/LIBRARY. We envision a computer resource center in lieu of a traditional library as a major area to offer quantitative support for the various teaching areas. A new library will be built on the site as an augmentation to the Resource Center, and we will encourage the new library to concentrate its collection in the areas of the fine and performing arts as well as architecture so that hard copy material is available. As we foresee the evolution of education in our disciplines over the next twenty-five years, we see a great need for strong quantitative support concerning the power of the computer. 2. COOPERATIVE PROGRAM. We see a qualitative support area in the form of a formalized cooperative program. This program would enable our students to experience internships, for example, in the various arts organizations within the region and beyond. 3. CORE STUDIES. We see a core study department serving all disciplines providing courses which all professional and academic students would take. Certainly such courses as English, Business Management, Building Science, Engineering, Mathematics, etc., would have a place in the curriculum in order to produce a well- prepared student. Some of these courses will be critical for the transfer student. B. COMPUTER RESOURCE CENTER VS. TRADITIONAL LIBRARY The Computer Resource Center will be a shared resource in the truest sense. From on-line "real time" conferencing with arts colleagues a world away to facilities for high level CAD/CAM in connection with architectural drafting, the Center will be a twenty- four-hour resource available to all students and faculty on-site and remotely. Limited access for the public at large can be made available on a subscription basis. 1. TRENDS. In the past few years, the use of computer networks in education has gone from being a curiosity to a major component. Thousands of teachers and students are now using computer networks on a regular basis to learn and interact with each other, as well as to create and express themselves. It is clear that networks have the potential to significantly reshape the way we conduct education. 5 Draft- May 31, 1994 2. COMPUTERS AND THE ARTS. The Institute's computer resources will be used by students as an expressive medium. Computers do not replace the painter's canvas, but exist as a complement to traditional media. The possibilities are endless: choreographers can work out intricate dance patterns, stage directors can model scenes and view them from every angle, sculptors can preview their works in three-dimensions - all on computers. The Institute will be "State-of-the-Arts". 3. ELECTRONIC MESSAGING/BULLETIN BOARD. On one level, a bulletin board system (BBS) can provide electronic messaging and computer conferencing capabilities for the faculty and students. Early in their orientation, students can be shown a videotape demonstrating how the bulletin board works and be encouraged to use it during the term of their enrollment. Course materials and assignments can be posted on the system, but most of the time it is used for informal interaction between students and instructors. Access to such a bulletin board will be free to students and faculty, and limited access can be made available to non-students; providing a service to the public and generating revenue for the institution. Inasmuch as a number of the students are expected to be part-time students with full-time outside jobs, such students tend to be very busy and place a premium on their free time. Faculty spend much of their day in a classroom teaching, and are often difficult to reach by telephone. The bulletin board provides a convenient and efficient means for students to interact with faculty and each other. Another aspect is that students or faculty can be active electronically in a course without always being physically present for class meetings. This increases the geographical range of our courses and makes them attractive to students who would not normally enroll because of their distance from the Institute. Probably the most significant implication of using computer networks in connection with teaching is that it can dramatically increase the degree of student- instructor interaction. Instead of a few questions during or after class, it now becomes possible for students to post questions on the bulletin board any time they wish. 4. LIBRARY RESOURCES. The Computer Resource Center will be the repository of the archives in lieu of traditional "stacks" associated with other libraries (It should be noted that the plan for Christopher's Village incorporates a traditional library that will be accessible to students and faculty). Today's technology permits scores of texts to be assembled on a single CD-ROM disc, which discs can be made available over the network. Additionally, the discs can hold digitized graphics, sound and full-motion video. A centralized computer library/network offers the possibility of all students and instructors having access to any course discussion, and makes it possible to participate in (or at least "browse" through) any materials or course being conducted. Thus, the network breaks down the artificial walls that traditionally exist between different disciplines. 6 Draft -May 31, 1994 It is clear that teachers need to use the computer network and library as part of their professional activities in order to become comfortable enough to use them in connection with their teaching. Like many universities and colleges, we anticipate making extensive use of larger, outside networks to interact with colleagues around the country and world. One such larger network, BITNET, adds a new twist to traditional research activities. For example, there are a number of electronic journals available for both reading and contributing. The envisioned campus network would also allow electronic access to university library card catalogs. Students and faculty could "sign on" to the catalogs and conduct extended searches of the other libraries' entire holdings (including periodicals). 5. IMPLICATIONS TODAY AND TOMORROW. While placing us on the cutting edge, this use of computers discussed above is typical of what is occurring at many schools and institutions around the country. When students use computers for class activities, those activities tend to be collaborative efforts that involve small groups collecting and sharing information with students at other schools. Over the next five, ten and fifteen years, advances in computer and related technologies will bring new dimensions to the concepts expressed above. Electronic mail (E-Mail) will give way to full motion video clips. On-line conferencing will also incorporate the visual element. The fruition of "Virtual Reality" will make it possible for students in the fine arts to stroll through the finest galleries in the world from the comfort of the center and/or their homes. Performing arts students will be able to rehearse on the VR "stage" of the foremost theaters. Architects can look forward to creating their traditionally two- dimensional renderings in the third dimension promised by laser holography. 6. PLANNING CONCERNS. Networking will be considered for all terminals/computers within the center and individual offices, and classrooms during the planning process. With regard to determining appropriate equipping of the center, hardware and software will be evaluated to determine: a. Can the hardware and software be used to achieve an educational objective or technology? b. Can the hardware and software be upgraded to achieve future educational goals? 7. SUCCESS. The success of any computer technology plan depends on the staff's ability -- both technical and educational -- to take advantage of it. Some teachers will learn applications on their own initiative and will encourage students to use what is available to them in the way of technology. Other teachers need more • assistance; therefore, a strong ongoing training and support program is vital to the success of our plan. , 7 Draft-May 31. 1994 C. THE COOPERATIVE EXPERIENCE: Each discipline under the institute umbrella can avail itself of a unified internship program. A central office can coordinate placement of students in hands-on situations with leading organizations and Masters. Centralization allows for prudent use of resources and an assurance that the internship experiences of students across several disciplines are uniformly challenging and rewarding. It also makes it possible to better monitor the interns' performance. While not a mandatory requirement of enrollment, we envision our internship program as ultimately placing one out of every four full-time students. The burgeoning Florida film industry will afford nearly unlimited opportunities in film and television. Our students will be found both behind and in front of the cameras at Universal Studios in Orlando and in entertainment industry facilities here in Palm Beach County as well as nationally. Our second phase music and dance students (performance and management), will be placed with leading Florida institutions and national ones such. as the Boston Symphony and New York City Ballet. • Internships allow the Arts Institute to place its imprint nationally and develop and enhance the prestige of the institution and its students. D. CORE PROGRAMS. In order to serve the several disciplines, a core studies program will be developed to insure that our students have certain basic educational qualifications. This is based on the assumption that many of our students will take what they have learned and go on to other institutions where such basic instruction will be presumed and required. Faculty associated with the core studies will be the unifying agents, having access and contact to and with all students. While not presently intended to provide a full, traditional freshman/sophomore liberal arts grounding, our offerings in English, Business Management, Building Science, Engineering, Mathematics, etc., will focus on providing tools of understanding. Our goal is enabling the learning process rather than fulfilling degree requirements. A student in drafting, for example, should have an indoctrination in sound engineering principles. Likewise, an Arts Institute intern to the business office of the Metropolitan Opera must be exposed to and possess knowledge of basic arts management. This is essential to preserve and build the prestige of the Institute and maximize the benefit of the experience to the student. We anticipate that many of the same faculty conducting classes within the separate disciplines can be called upon to teach core studies. This will have the needed benefit of strengthening unity between disciplines on the part of faculty and, students. 8 Draft- May 31. 1994 IV. ASSOCIATIONS REGIONAL, NATIONAL, INTERNATIONAL A. OVERVIEW Because of our location in South Florida, we see a regional connection to such institutions as the Kravis Center, the West Palm Beach School of the Arts, Florida Atlantic University, Orlando studios, The Jupiter Theatre, and The Norton Gallery in West Palm Beach. These organizations are all close by and can be very helpful as we develop Master classes with visiting artists and cooperative programs where our students will be able to avail themselves of internships.' The students in Arts Management will have the opportunity to do their laboratory work with various organizations within our region. With the proximity of Disney World in Orlando and the film and television industry that has sprung up around it, opportunities will exist. The nearby Jupiter Theatre brings many qualified artists who might participate in Master class opportunities. We also see associations developing with national institutions such as the Chautauqua Institution in western New York State. There is a movement in Stuart, Florida, called Chautauqua South, which may provide possibilities relating to the Institute for the Arts. We will seek out national and international associations, we will explore arrangements with transfer institutions and professional arts organizations in the U.S. and other countries. B. CO-OP. In addition to the internship opportunities for students described previously in this report, co-operative opportunities exist for faculty, as well. It is envisioned that persons teaching at the Arts Institute may also hold positions on other faculties locally and nationally. Our location in South Florida makes it attractive for . educators from all other parts of the country to associate with us in addition to their other positions. The environment proposed for Christopher's Village would make this a more rewarding experience for the visiting educator than he or she might otherwise find. He or she could "live" the arts and may quite possibly take away more-from the experience than ever imagined. C. MASTER CLASSES. The theatre spaces envisioned for the Arts Institute are ideally suited for Master classes. The Jupiter Theatre and the Kravis Center — not to mention the various theatres, organizations and industries of Dade, Broward, Palm Beach and Orange Counties would serve to provide an unlimited flow of talented, gifted and successful persons who could be called upon to share their experiences and give advice to our students. Master class instruction is a departure from traditional course instruction in that the Master interacts with the students in a single session or a limited number of sessions. The emphasis is generally on applying skills rather than acquiring them and on professional critiques. A fine model for the Master class program would be that used by the University of Miami School of Music which coordinates the invitation of distinguished professionals from the various musical disciplines. The Master classes are generally open to students of other disciplines on a space-available basis. Faculty heads are called upon to coordinate a loose structure for the professional or Master to operate 9 Draft - May 31, 1994 within, which is flexible enough to accommodate any direction in which interaction may flow. In our model for the Arts Institute, the department or committee coordinating scheduling of Master classes would handle all ancillary matters (transportation, accommodations, remuneration), through a discipline liaison position. D. ASSOCIATIONS. Ideally, the Arts Institute should be seen as an integral portion of a global arts village. As such, associations with other arts institutions or • communities and organizations is essential to stimulating growth. The Arts Institute at Christopher's Village has the advantage of being situated in a community of "ex-patriots" with strong ties to Chautauqua, New York, and many other fine, well-established arts communities. The association concept complements the Arts Institute faculty who may also hold positions at other institutions with that of Arts Institute students who may avail themselves of one or another program at a college or institution with whom we share an association. This applies whether the association is as near as the neighboring county or a world away. • 10 Draft. May 31, 1994 V. MANAGEMENT AND PLANNING TO ENSURE SUCCESS Implementation of an effective management and planning process is essential to meeting the challenges faced by the Institution. Management and planning will be guided by our goal and vision of establishing a top-quality institution of higher learning which will produce top-quality students. Planning must be viewed as dynamic; that is, as a process of formulating "living concepts" of the Institution and its operations. Development and operations will ultimately be integrated; only to be modified and revised as mandated by our continuing assessment and appraisal of changing external conditions and measures of internal performance. Responsibility for managing and planning the institution will be accomplished by a group of professionals. The initial group will be expanded, and its roles and responsibilities will evolve as the institution is developed and becomes operational. The Institute Committee's' initial responsibility will be to define the institution and formulate plans for its development and operations. In time, the Committee will expand to include representatives from the Lighthouse Gallery and BRITT, and will strive to improve the definition and plans as herein presented. Attention will be directed toward implementing the near-term coordination and information-gathering 'activities as described. The Institute Committee will be a standing committee, representing the highest level of functional management and planning for the Institute throughout its development and operations. During the coming months, and prior to the beginning of Phase I operations, a Board of Advisors will be appointed. This Board will be composed of individuals who have attained regional, national, and international reputations in the fields of art and architecture. The roles and responsibilities of this group will be to advise the Institute Committee on all aspects of operations ranging from fund-raising to faculty selection and curriculum development. 'The initial Institute Committee members are: Robert Denning (Chair) , Victor Oraham (Deputy Chair) , Richard Kristensen, Fred Landrum and Jim Moon. 11 Draft - May 31, 1994 VI. POTENTIAL PRE-CONSTRUCTION INSTRUCTIONAL PROGRAMS IN CONSIDERATION A proposal is currently being considered for the Institute to host a joint international program with the Christopher D. and Elka P. Norton Foundation for the Arts, Inc. The Norton Foundation recently hosted a conference in Raleigh, North Carolina, to contact and meet prospective faculty and to discuss the structure of a high caliber, high quality foreign study program. Among the factors being taken into consideration are the long-term feasibility of such a program and the potential positive effect such a program will have on the Institute and participants. As proposed by the Norton Foundation, an inaugural program to take place in Cuernavaca, Mexico, would be tentatively scheduled for February, 1995. This program would comprise two two-week sessions and possibly feature instruction in the visual and fine arts, theater and dance. Follow-up sessions in Cuernavaca in 1996 are proposed, as well as a program in Prague. Additional meetings are scheduled locally for additional consideration of this proposal and others that will promulgate the Institute and its goal of the highest quality education. • 12 • Draft- May 31. 1994 VII. PLANNING PROJECTIONS The Institute Committee is actively engaged in initial planning activities. In addition to providing a conceptual framework for operations, efforts have been directed to defining the physical size, projected enrollment for each study discipline, and the financial resources which will be required to sustain development and operations. (This document is a product of this Committee's initial efforts.) Efforts have been directed toward defining the physical size and design of the Institute; the disciplines of study to be offered and the projected enrollment for each; and, the financial resources which will be- required to sustain development and operations. (This document is a product of this Committee's initial efforts.) Initial conceptual plans that have been based on studies commissioned by BRITT and the Lighthouse Gallery of their potential needs call for the Institute to be constructed and become operational in two phases. The construction for Phase I-A, will contain 38,500 square feet (gross). This phase will provide facilities that are approximately twice the size of those currently occupied by the Lighthouse Gallery and BRITT. A "black- box" theater containing 220-225 seats is included. Phase I-A will be completed in early 1997, and incorporates all of the anticipated needs of the Lighthouse Gallery and BRITT, as well as certain other accommodations to be dedicated to a sculpting studio/instructional area. Phase I-B, will add 20,000 square feet (gross) to the Institute and will contain more laboratories and classrooms, including those for architecture, and a computer/resource center. Phase I-B, will be completed in late 1997 or early 1998. Phase II will add 45,000 square feet (gross) and will contain a 450 seat performance hall. Phase II is planned for completion in early 1999. The total area of the Institute upon completion will be 103,500 square feet. 13 Draft - May 31. 1994 A pro-forma cash flow projecting the use and source of funds has been generated for the Institute through the year 2001. A summary of the data contained in the pro-forma is shown below. SUMMARY OF INSTITUTE PRO FORMA CASH FLOW (Dollars x 1000) ITEM 1994 1995 1996 1997 1998 1999 2000 2001 Use of Funds General 149 440 370 483 608 914 1050 1185 Operations/ Administration/ Professional Services Faculty 0 0 0 675 868 1292 1485 1678 Development Costs 1000 2000 2500 3000 3500 3500 0 0 Total Funds 1149 2440 2870 4158 4976 5706 2535 2863 Required Source of funds Donations 1200 10000 4000 2000 1000 1000 1000 800 CVF Surplus 0 0 0 0 0 0 0 0 Tuitions 0 0 0 762 948 1300 1485 1670 Total Cash 1200 10000 4000 2762 1948 2300 2485 2470 In—Flow Net Cash Flow 51 7560 1130 —1396 —3028 —3406 —50 —393 Cum Net Cash 51 7611 8741 7345 4317 911 861 468 Flow Notes: 1. The General Operations/Administration/Professional Services item includes expenses related to resource development activities(e.g.professional fund-raising fees which are significant in 1995),activities relating to community relations(e.g.promotional video tape and brochures)and a state and national promotional campaign in 1996. 2. Development Costs include purchases of furnishings,equipment,library/computer resource center,and accoutrements for the Institute in 1997 and 1999. 3. All cash flows are projected on a consolidated basis(i.e.no distinction is made relative to proportions of revenues and expenses for Lighthouse Gallery, BRITT,etc.)this matter will be the subject of future negotiations. 14 Draft - May 31, 1994 In Schedule "A", attached hereto and setting forth the projected enrollments for each discipline during the first five years of the Institute's operations, resource requirements in 1994 include the finances necessary to support efforts related to gathering information sufficient for planning and decision-making, obtaining community/regional support by heightening awareness of the attributes and benefits to be derived from the Institute, and defraying costs associated with professional fund- raising activities. Development costs, primarily related to architectural design of the Institute, will also be incurred in 1994. Beginning in 1995 and continuing through 1998, significant construction costs leading to the facilities necessary for Phases I and II operation will be incurred. Prior to the completion of construction for each operational Phase, additional costs will be necessary to provide appropriate furnishings, equipment, library and computer resource center, and accoutrements for the Institute. General operating expenses, and those associated with select professional services, will continue at increased rates through Phase I, and thereafter. Beginning with Phase I operations, and thereafter, expenses will also be incurred for full-time faculty and adjuncts. The source of funds to support construction and other expenses leading to operational Phases I and II will be donations. Beginning with Phase I operations in 1997, significant amounts will be derived from student tuitions; however, the need for donations will continue throughout the operation of the Institute. Initial projections indicate that it will be beyond the year 2001 before surpluses will be available for transfer from Christopher's Village Foundation to the Institute to be used in support of its on-going operations. 15 Draft - May 31, 1994 SCHEDULE "A" PROJECTED ENROLLMENTS OF FULL-TIME EQUIVALENT STUDENTS (In order to interpret the following chart, it must be understood that Continuing Education enrollment is expressed in FTES Units (See Note 1, below)). PHASE I OPERATIONS PHASE II OPERATIONS Discipline 1997 1998 1999 2000 2001 Fine Arts 100 120 140 150 170 Theatre/Film 40 60 80 90 100 Architecture 20 30 40 50 60 Arts Management 30 40 50 ' 60 70 Music 0 0 40 55 60 Dance 0 0 25 30 35 Continuing Education* 450 500 550 600 650 TOTAL ENROLLMENT 640 750 925 1035 1145 Notes: 1. The enrollment for Continuing Education is shown in Full-Time Equivalent Students (FTES). 1 FTES = 4 students (During the last 12 months period, Lighthouse Gallery had approximately 1400 students = 350 FTES). 2. ft is assumed that approximately 15%of the total enrollment,exclusive of Continuing Education,will be students from out of state. • 16