A city staff review of the performing arts centre (PAC) project reaffirms what council said when they agreed to name the venture a priority last November - the demand is there but there's no money.
During tonight's council meeting, city manager Beth James will present a report outlining the results of a review of studies and information compiled by the Prince George Regional Performing Arts Centre Society between 2006 and 2012.
The review updates the cost of the proposed facility with both an 800-seat theatre and smaller 250-seat theatre from a 2010 estimate of $42 million to more than $51 million (in 2017 dollars). This also includes extra costs not included in the original capital projections, such as additional space requirements and offsite works.
"Given the uncertain funding situation, it is not practical to provide a project schedule at this time," James wrote in her report to council.
Assuming four-way split in funding, with the private sector contributing 10 per cent of the cost and the three levels of government equally sharing the remaining 90 per cent, the city's contribution could be up to $15 million. That amount could be reduced to less than $12 million if the $3.5 million value of the proposed land is taken into account.
There is also the anticipation of the city providing the PAC with an annual operating subsidy that could be in the $400,000 range, annually.
Discussions with provincial and federal representatives have indicated that it will be years before there are any funding programs to support arts and culture endeavours, said the report.
Some options for the city's share of the cost include using some of the estimated $24 million coming in 2021 from the Terasen Lease In Lease Out agreement, federal gas tax money (which was recently adjusted to include cultural projects), potential land sale money or financing by increasing the tax levy.
The city-owned site nestled in the corner of George Street and Queensway between the Keg restaurant and city hall was identified as the preferred location for the PAC.
Among the site's positive attributes outlined in the report are its proximity to services and the district energy system connection and support for downtown revitalization.
However the location is also identified as having limited on-site parking, being in the one- to 20-year floodplain and having limited pedestrian connectivity, compared to other areas of downtown.
ENTERTAINMENT EAGERNESS
As part of their review, the city commissioned a telephone market demand survey of 450 Prince George residents who were asked about their live entertainment habits.
This included questions about what types of entertainment respondents have attended in the past 12 months, how much they're willing to pay, and whether they would be willing to attend events, if available, (and at what cost) in the future.
The results suggest a ticket ceiling of $45 for regional performers would be acceptable to 77 per cent of the market and that the city could see 82 per cent of live entertainment patrons attending between two and six performances per year.
A maximum ticket price of $80 for a national or international performer would be acceptable to 88 per cent of the market with 43 per cent of those people attending at least one show and 34 per cent buying tickets to two, the survey also suggests.
"In examining respondents' choices between past attendance and predicted attendance, in every category [i.e. dance, comedy, live theatre, etc], the predicted attendance was higher, suggesting that there is a positive market demand for live entertainment and performance of various genres," said the PAC review report.
However the report also notes that ticket purchases would depend on having events in which people are actually interested.
"Ticket revenue will depend on the genre or type, the quality, the profile (how well known) and how many events they have already attended in the last 12 months," the report said. "As such, a variety of quality performances is the key revenue model strategy employed by most centres."
The survey, conducted March 11 to March 20 by R.A. Malatest and Associates, has a margin of error equivalent to 4.6 per cent, 19 times out of 20.
"Trends have been consistent suggesting that a proposed PAC would be able to program 18-20 national/international performers in Prince George per year," said the report.
But these shows are contingent on a a few facility, the report suggests.
Conversations with tour promoters indicate the city's geographical location isn't presenting challenges, but rather the available venues.
"They [Gene Daniels Promotions and Shantero Productors] indicated that the current limitations with the P.G. Playhouse and Vanier Hall (either size, technical or scheduling) are resulting in a number of missed opportunities for their tours coming to Prince George," the report said.
The staff review looked at those existing venues, developing scenarios in which Vanier Hall and the Prince George Playhouse are either updated, decommissioned (Playhouse only) or left unchanged with a PAC built as proposed, with only one theatre or not built at all.
It would cost upwards of $26 million to make any relevant changes to Vanier Hall, the report estimates. Building a one-theatre PAC would reduce the project cost by up to 27 per cent, but there doesn't seem to be much appetite in the city report for relying on having the P.G. Playhouse to fulfill the smaller theatre needs over the long term due to its land having a high commercial value.
The Playhouse's current layout means it would take major demolition and reconstruction to expand its seating capacity and it has some functional issues that need to be addressed such as more storage space, dressing room improvements and new lighting, sound and video projection.
COMPANY CO-OPERATION
There are multiple assumptions made in the report, the biggest of which is that Theatre NorthWest will move into the PAC as a resident company. However discussions with the theatre group, currently operating out of Parkhill Centre on North Nechako Road, are still ongoing with a variety of issues yet to be addressed.
"While there is an interest in TNW to find a long-term 'home', their current situation works on many levels, and it poses a challenge for TNW to deviate from 'what works' to a potentially new way of operating," the city report said.
Among the needs the theatre has identified include control and exclusive use of the smaller theatre space, no impact to their costs, a high-level of independence from the PAC and control over ticketing. They've also identified issues with parking and security associated with a downtown location.
