Budget & Finance Committee Meeting, Special

Summary

Meeting Overview

The Budget & Finance Committee met on March 3, 2009, with V. Steele presiding. The committee heard five informational presentations and received three public comments during the meeting. One motion was brought to a vote.

The committee's agenda focused on cultural and operational matters, including a continuation of the Lyric Theater business plan and reimbursement resolution review, parking requirements and zoning ordinance compliance, business plan assumptions and staffing levels, museum staffing and curator roles, and a centralized cultural affairs model. All agenda items were presented for informational purposes.

Attendance

The following individuals were present at the meeting on March 1, 2009:

V. Steele, Feigel, McChord, Stinnett, James, Gorton, Lane, Myers, Blues, Henson, Martin, DeCamp, Howard Stovall, Dick Decamp, Mr. Clark, Juanita Peterson, Phillip Greenburg, Shay Rabold, Susan Hill, Brian Markham, Logan Askew, Dewey Crow, Gary Means, Phil Hollaback, Annalise Corsoni, Fred Mills, Michael Jonathan, and Beno Nelson.

No absences or late arrivals were recorded.

Votes and Decisions

The meeting included one motion that was brought to a vote.

Motion to Establish Lyric Theater Work Group

A motion was made by James and seconded by Myers to ask the Vice Mayor to appoint a work group to review and develop the Lyric Theater business plan. The motion passed by voice vote 13:08. No specific vote counts were recorded for this voice vote, and there were no abstentions.

Budget and Financial Actions

The meeting included one financial action regarding the Lyric Theater project.

Lyric Theater Construction Documents Reimbursement

Resolution 0073-26 appropriated $6,000,000 for reimbursement of costs associated with construction documents for the Lyric Theater.

Public Comment

Three speakers addressed the council during the public comment period.

Mr. Clark 1:46:57 discussed the operations of the Downtown Arts Center and Arts Place. He explained that LexArts operates multiple facilities under different agreements and funding models. Mr. Clark expressed willingness to participate in a working group aimed at improving coordination and cost efficiency across LFUCG-owned arts venues.

Howard Stovall 2:01:12 commented on Kentucky Theater operations and parking. Stovall described the theater's landlord-tenant model and cautioned against establishing high staffing levels for the Lyric. He emphasized that upfront investment in parking would be critical to ensuring the long-term success of the theater.

Dick Decamp, a former council member, 2:06:43 called for transparency and a feasibility study before proceeding. Decamp urged the council to table the bond issue until construction drawings and cost estimates are available. He stressed the importance of caution and transparency, particularly given the financial crisis context.

Appointments

Juanita Peterson was reappointed to the Lyric Theater Task Force.

Contested Items

Parking Adequacy and Project Viability

Council Member Lane and others raised strong concerns about whether the project would have adequate parking. Those expressing concern argued that insufficient parking would undermine the project's overall success. Other council members countered that existing downtown parking combined with creative solutions would be sufficient to meet the project's needs. This disagreement reflected differing assessments of parking requirements and the viability of alternative approaches to address parking demands.

Bond Issue and Cost Transparency

Dick Decamp challenged the council's decision to proceed with a $6 million bond issue without finalized construction cost estimates. Decamp called for greater transparency in the process and advocated for delaying the bond issue until cost projections were available. This procedural dispute centered on whether the council should move forward with bonding authority before having complete cost information, with Decamp arguing that finalizing construction estimates should precede the bond decision.

Continuation of Lyric Theater business plan and reimbursement resolution review

The committee continued its review of the proposed Lyric Theater business plan during this meeting. 0:00

Key Participants

The discussion involved several committee members and stakeholders, including Shay Rabold, Susan Hill, Phillip Greenburg, Juanita Peterson, Howard Stovall, and Dick Decamp.

Topics Addressed

The committee's review focused on several critical aspects of the business plan:

• Parking compliance requirements and feasibility
• Staffing assumptions and projections
• Revenue projections and financial viability
• The need for a working group to conduct a comprehensive assessment of the plan

Public Input

The committee invited public input on the project's viability and how the Lyric Theater would integrate with other arts facilities in the community.

Outcome

The meeting was informational in nature, with no formal action taken. The discussion established the framework for continued evaluation of the Lyric Theater business plan through the proposed working group assessment process.

Parking requirements and compliance with zoning ordinance

1:06

Committee members discussed the adequacy of parking for the Lyric Theater, focusing on compliance with zoning ordinance requirements. The Law Department had determined that 33 parking spaces were required for the project.

Key participants in the discussion included: - Council Member Lane - Council Member James - Council Member Myers - Council Member Beard - Shay Rabold

Issues debated:

The committee examined both on-site and nearby parking options for the theater. Members raised concerns about whether existing parking solutions would satisfy zoning compliance requirements. The discussion also addressed the economic feasibility of meeting parking mandates, with committee members considering whether strict compliance would be financially viable for the project.

Proposed solutions:

Committee members explored creative alternatives to traditional on-site parking, including: - Shared parking arrangements with nearby properties - Transit links to reduce parking demand

Outcome:

The discussion was informational in nature, with no formal decision or resolution reached during this portion of the meeting. The committee's examination of parking requirements and potential compliance strategies was documented for further consideration.

Business plan assumptions and staffing levels

Phillip Greenburg of AMS Consultants presented the Lyric Theater business plan 33:08, which detailed three operational scenarios along with corresponding staffing models and revenue projections. The presentation outlined the assumptions underlying the business plan's financial forecasts.

Greenburg emphasized an important clarification regarding the scope of the work: the plan was not intended to serve as a feasibility study. He also noted that staffing levels in the plan had been reduced at the task force's request, indicating that the presented staffing model reflected modifications made in response to stakeholder input rather than an independently derived recommendation.

The presentation was informational in nature, providing the task force with the detailed operational and financial framework necessary to understand the proposed business model for the theater.

Museum staffing and curator role

Council Member Gorton raised questions about the absence of a museum curator position in the business plan 1:09:45.

Phillip Greenburg responded by clarifying the operational model for the museum space. He explained that the museum would function as a permanent exhibit space featuring traveling exhibits, rather than requiring a dedicated full-time curatorial staff. According to Greenburg's explanation, the staffing needs would be limited to temporary personnel brought in specifically for setup and teardown of exhibits as they rotate through the space.

The discussion was informational in nature, with Greenburg's clarification addressing the concern about the apparent gap in curatorial staffing by outlining how the museum's operational structure would accommodate exhibit changes without requiring permanent curatorial positions.

Centralized cultural affairs model

The committee discussed the potential establishment of a centralized Department of Cultural Affairs, modeled after an existing structure in Norfolk, VA. 1:15:30

Key Participants

The discussion involved Phillip Greenburg, Council Member Myers, and Council Member Henson.

Main Focus

The proposal centered on streamlining operations across multiple LFUCG-owned arts venues and improving overall efficiency through a centralized management structure. The Norfolk model was presented as a reference point for how such consolidation could be organized and implemented.

Outcome

The discussion was informational in nature, with no formal action taken at this time.