HomeMy WebLinkAbout09-343AUGUST 25, 2009
09 -343 RESOLUTION
(CARRIED 7 -0 LOST LAID OER WITHDRAWN )
PURPOSE: APPROVE CIP BUDGET ADJUSTMENT IN THE AMOUNT
OF $1,827,793.22 TO FUND IMPROVEMENTS AT THE
GRAND OPERA HOUSE
INITIATED BY: CITY ADMINISTRATION
WHEREAS, on November 25, 2008, the Oshkosh Common Council approved a
capital improvements budget of $237,000 for renovations to the Grand Opera House;
and
WHEREAS, since that time, a structural analysis has indicated that significant
improvements to the roof and ceiling structures of the Grand Opera House are
necessary in the interest of public safety; and
WHEREAS, the total estimated costs associated with said renovations to the
Grand Opera House total $2,064,793.22; and
WHEREAS, additional funds in the amount of $1,827,793.22 are necessary to
complete the project as estimated;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that:
1. The capital improvements budget fund (Account #501- 1020 -1703-
00000) be increased in the amount of $1,827,793.22.
2. The capital improvements budget revenue account be increased by
$500,000 to reflect a grant from the State of Wisconsin Building
Commission for improvements to the Grand Opera House.
3. The capital improvements budget revenue account be increased by
$5,000 to reflect a grant from the National Trust for Historic
Preservation.
4. The capital improvements budget revenue account be increased by
$1,322,793.22 to reflect additional general fund borrowing that will be
necessary to complete this project.
BE IT FURTHER RESOLVED that any donations for the benefit of the Grand
Opera House be used to offset the debt service associated with these improvements
until such time as the debt for said improvements has been paid in full.
Grand Opera House Improvements
Budget Summary
Amount Spent To Date
Architectural / Engineering Services $185,793.22
General Contractor Services $86,700.00
Other $7,500.00
Total
$279,993.22
Costs Yet to be Incurred:
Truss Repair / Fire Sprinkler Bid
$1,379,000.00
Wood Soffit Repairs
$60,000.00
Architectural / Engineering Services
$38,000.00
Restore Historic Decorative Elements
$50,000.00
Equipment Removal / Reinstallation
$25,000.00
Contingency (15 % of Remaining Project)
$232,800.00
Total
$1,784,800.00
Total Project Costs (Both Spent and Unspent):
$2,064,793.22
Grand Opera House Improvements
Project Funding
Total Project Costs $2,064,793.22
Funding Sources.
2009 CIP / Borrowing (Completed) $237,000.00
State Matching Funds
(1/3, up to $500,000) $500,000.00
Grant - National Trust for Historic Preservation $5,000.00
Total Funds Available $742,000.00
City General Fund Borrowing (Amount Needed) $1,322,793.22
Grand Opera House Improvements
CIP Budget Adjustment
Total Project Costs $2,064,793.22
Less: Approved 2009 CIP Budget ($237,000.00)
Additional Budget Authority Needed - CIP Budget $1,827,793.22
August 18, 2009
Members of the Oshkosh Common Council:
As you know, on February 27, 2009, the historic 1883 Grand Opera House, owned by the
City of Oshkosh and leased to our organization, was closed due to a severe structural deficiency.
For just under six months, our organization has operated in an "emergency mode ", first relocating
twenty -five performances (including two high- school musical extended runs, five educational
programs and two weddings) to alternate locations. We reduced our operations by over 30% in
order to continue operations while the City ,found the most expedient and fiscally appropriate way
to repair the building.
As we look forward to the eventual reopening of The Grand, we enter the new season
with no option for rental fees, limitations on ticket sales with a reduced number of shows, and
reduced contributions from private donors.
Despite an operating budget that has been severely impacted by the closure, the Board of
Directors of the Oshkosh Opera House Foundation has met and is offering this proposal. We ask
your careful consideration to the fact that we have already put significant effort in terms of staff
and resources into the successful effort by Rep. Gordon Hintz to secure $500,000 in matching
funds from the State capital budget; and $5000 from the National Trust for Historic Preservation.
The Oshkosh Opera House Foundation has voted to commit to contributing up to
$250,000 to the repair project. These funds will be raised in the form of a service fee on ticket
sales for the amount collected commencing with the 2010 -11 season, or through private
contributions,.or a combination of both, until such amount is raised or for a period of ten years,
whichever is sooner, and as long as the City retains a lease with the Oshkosh Opera House
Foundation.
. Our commitment to this funding is contingent on the Oshkosh Common Council voting at
its August 25, 2009 meeting to approve the long -term financing of the repair and the approval of
the recommended bid for repair resulting in the completion of this restoration project. It is also
contingent on the renewal of the lease between the Oshkosh Opera House Foundation and the
City of Oshkosh.
We thank and commend the private sector and users of The Grand Opera House for the
over $10 million in support they have provided over the past 20 years for programming and their
faith in us for the future. Finally, we thank you for your support and your individual service to
Oshkosh. With your vote on August 25, we can look forward to The Grand continuing its pivotal
contribution to this community for another 125 years.
Sincerely,
r —
James R. Macy, President
Oshkosh Opera House Foundation