HomeMy WebLinkAboutCSD-2024 -156 - Community Centre Construction in Rosenberg​ - Update
Development Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: October 28, 2024
SUBMITTED BY: Cory Bluhm, Executive Director, Economic Development, ext. 7065
PREPARED BY: Jeremy Dueck, Director, Culture & Entertainment, ext. 5264
WARD(S) INVOLVED: All
DATE OF REPORT: October 7, 2024
REPORT NO.: DSD-2024-281
SUBJECT: Conrad Centre for the Performing Arts Operating Model
RECOMMENDATION:
That the operating model for the Conrad Centre for the Performing Arts be approved
as outlined in report DSD-2024-281, subject to final ratification of the 2025 budget;
and,
That the Director of Culture & Entertainment be authorized to enter into an agreement
with Green Light Arts, for the delivery of mentorship services to renting organizations
until June 30, 2026, to the satisfaction of the City solicitor; and further,
That approval authority for rental agreements and rental fees for the Conrad Centre
for the Performing Arts be delegated to the Director of Culture & Entertainment or
designate.
REPORT HIGHLIGHTS:
The purpose of this report is to make recommendations around a new operating model
for the Conrad Centre for the Performing Arts (CCPA), considering the needs of the
local performing arts community, the core competencies of venue management, and
2023-2026 strategic plan and long-term vision for culture and entertainment
in Kitchener.
The key finding of this report is that staff recommend a City-led operating model that is
supported by a non-profit arts organization. A shared operating model with the City
leading venue operations and a non-profit supporting with mentorship services will
allow the mandate of the CCPA to be achieved while recognizing the needs of
performing arts organizations and presenters. To that end, staff recommend that a
mentorship services agreement be implemented with Green Light Arts until June 30,
2026.
The financial implications are that an initial annual City operating subsidy of $382,000
is required.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Community engagement included two surveys. The first survey was intended for
past/future audience members, with 280 responses over a 1-month collection period on
Engage WR. The second survey was intended for past/future presenters of performing
arts. There were 17 responses and 8 additional one-on-one follow-up meetings with
presenters. In addition, significant consultation with the Arts community occurred
through the Bloomberg-Harvard Cities Initiative which has led to the above
recommendations.
This report supports Creating an Economically-Thriving City Together: Focuses on
growing an agile, diverse local economy powered by talented entrepreneurs,
workers & artists; creating opportunities for everyone and a resilient future that
propels our city forward.
EXECUTIVE SUMMARY:
The City acquired the Conrad Centre for the Performing Arts (CCPA) in 2021 with a mandate
to significantly increase community usage. In October of 2023, the City assumed full
operations of the CCPA following the bankruptcy of the KW Symphony. The following report
outlines a proposed operating model as follows:
- A new mandate is proposed, based on community engagement, for the CCPA to
become a vibrant, active cultural hub that supports a broad spectrum of genres, in
a transparent and accessible manner;
- A City-led operating model, based on the results of a path-of-the-presenter analysis,
- A hybrid financial model is enacted, where the City would provide a reasonable
service-level to presenters and the community, with limited financial burden to the
tax base; and,
- A non-profit arts organization is engaged with the CCPA to provide mentorship
services to emerging arts organizations and assists with the operation of the CCPA
as it transitions to a City-led operating model.
This report provides comprehensive analysis and direction on a sustainable and equitable
operating model for the CCPA, considering the needs of the local performing arts
BACKGROUND:
The Conrad Centre for the Performing Arts (CCPA) is a city-owned 24,000 square foot
performing arts venue, located at 36 King Street West. The CCPA features a flexible 300-
seat theatre, 100-person rehearsal hall, four dressing rooms, and a green room. The
Manfred and Penny Conrad Family Foundation generously donated the CCPA to the City of
Kitchener in January 2021 to support performing arts in the community.
In October 2023, the City assumed operational responsibilities of the Conrad Centre after
its lease with the KW Symphony ended due to the s
Green Light Arts (GLA), a non-profit arts organization that previously provided booking and
rental support services for the symphony, was approved by Council to temporarily operate
with the City is set to expire on December 31, 2024,
however staff have the authority to extend the agreement as needed.
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Within a performing arts centre, the operator takes on the primary responsibility of venue
management work.At a high level, venue management operation can include scheduling,
contracting events and rentals, ticketing, event operations (e.g., production), event services
(e.g., staffing, food and beverage), etc.
Culture & Entertainment is a newly formed division that sits within Economic Development
and includes three units Arts & Creative Industries, Special Events, and the Centralized
Service Provider. The Centralized Service Provider is responsible for providing business
services and operational support to the culture and entertainment venues owned by the City
of Kitchener.
One of the key Council mandates for the Centralized Service Provider is recommending a
new operating model for the CCPA.
In addition, through the Bloomberg-Harvard Cities Initiative, engagement with over 40 arts
practitioners and organizations occurred. The result of the consultation created the following
value proposition:
We will tackle inequitable access to cultural facilities, grant funding, and
networks which makes it difficult for many artists and arts organizations to
thrive, because arts and culture is integral to a healthy economy, connection,
belonging and wellbeing. We will do so by determining unmet needs and
distributing resources more equitably, with the expectation that diverse arts
programming will be more present, and trust is strengthened. We will know that
we have succeeded when arts employment, cultural activities, space usage,
representation, and community participation increase.
REPORT:
When the Manfred and Penny Conrad Family Foundation donated the CCPA to the City, it
was on the premise that the City would bring the facility to life with a promise to drive more
activity to the venue and vitality to the area. As part of Make It Kitchener 2.0, Council
supported an ambition to launch platforms and enable opportunities for difference makers
to bring our city to life. City staff have also consistently heard from the local arts community
that affordable access to the CCPA would create new opportunity to increase cultural
programming in our community.
Opportunity & Analysis
The City has an opportunity to transform a tremendous, but underutilized, community gem
into a vibrant cultural hub, offering performances and experiences across a multitude of
artistic disciplines. Doing so would enable our local arts organizations, foster community,
attract new visitors to the downtown, and help drive a vibrant entertainment scene in
Kitchener.
The following provides a three-part analysis to determine the preferred operating model for
the CCPA, which includes:
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Part 1 a proposed mandate based on community engagement;
Part 2 an examination of three different operating models using a path of the presenter
form of analysis; and,
Part 3 an examination of three financial models to determine the preferred financial
structure for the CCPA.
PART 1 COMMUNITY ENGAGEMENT
In January 2024, staff began working on a community engagement plan to ensure that
interested parties could share feedback about the CCPA. Staff were interested to learn from
individuals, groups, and organizations who had previously used or may wish to use the
CCPA to present performance art (i.e., dance, music, film, theatre, comedy, etc.) as well as
the public who have participated as audience members or might be interested in attending
a performance at the CCPA in the future.
engagement plan included two surveys one survey for past/future performance art
presenters (e.g., arts organizations, promoters, event organizers, etc.) and a second survey
for past/future audience members. Past/future presenters were also given the opportunity
to participate in one-on-one follow-up meetings with City staff, providing additional feedback
to accompany their survey.
Based on community engagement survey results, in-person meeting feedback, and tangible
examples from the current operator (GLA), a new operating model needs to achieve the
following:
Maximize use of the facility (e.g., increased performance nights, increased rentals,
etc.);
Enable access to the space to the widest possible range of users, through adaptable,
transparent, and accessible scheduling procedures;
An affordable pricing model;
Production supports; and,
Professional venue management.
Community Engagement Audience Feedback
A public survey featured in Engage Waterloo Region intended for past, current, and future
CCPA audience members received 280 responses over a one-month period (April 22 to
May 22, 2024). A copy of the audience survey questions and responses are included as an
attachment to this report (see Attachment A).
From an audience perspective, the following trends and themes were identified in the survey
responses:
a) Utilization and variety audience mming to the
-and-coming artists and organizations.
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b) Affordability leveraging the CCPA to provide access to audience members who
may not have access to other performing arts spaces. The maximum ticket price
many respondents would be willing to pay to attend a performance at the Conrad
Centre is $26 - $50.
c) Equity and equitable access not giving certain presenters perceived preferential
access and ensuring that the opportunities within the space are equitable for both
presenters and audience members. Providing a safe and non-discriminatory
experience for everyone.
d) Number of shows attended most
CCPA 1-5 times.
e) Event type most respondents have attended the CCPA to experience music and
theatre.
f) Aesthetic and placemaking several respondents suggested that it would be
helpful to make the CCPA a place where people want to be, creating a welcoming
environment for all.
g) Promoting events take steps to proactively promote and market performances
hosted at the CCPA. Suggested solutions include a shared calendar, a more
interactive website, sending eblasts, or sharing social media posts.
h) Community support respondents expressed that the CCPA needs to be a place
that supports local artists as they build an audience.
Community Engagement Presenter Feedback
Staff solicited feedback from previous presenters (e.g., arts organizations, event organizers,
promoters, etc.) of performing arts at the CCPA as well as interested future presenters
both non-profit and commercial. A presenter survey link was sent to over 50 local arts
organizations as well as other invested groups.
From the presenter survey, staff received 17 responses and engaged in an additional 8 one-
on-one follow-up meetings. A copy of the presenter survey questions and responses are
included as an attachment to this report (see Attachment B).
The following trends and themes were identified:
a) Costing is critical presenters, especially local presenters, want to use the space
more frequently and maximize utilization. Respondents asked the City to look at
offsetting or subsidizing rental costs for local and non-profit presenters at the CCPA
to ensure high utilization. Presenters are aware that the CCPA needs to be careful
not to undercut similar-sized local venues. It was also made clear by several
presenters that they understand that the municipal taxbase is not responsible to cover
associated costs of presenting performance art (e.g., production, front of house
staffing, etc.).
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b) Equity in the booking and scheduling process presenters with previous
experience at the CCPA expressed concern about equity during the event intake
process as well as equitable calendar management. A transparent facility allocation
procedure would build trust with presenters.
c) Support in presenting events regardless of expertise, presenters of performance
art are looking for support from the venue operator at every step of the event process
(e.g., scheduling, contracting, ticketing, planning/operations, fulfilment, etc.). At a
performing arts centre like the CCPA, presenters shared that they would need help
producing their events and understanding the nuances of the venue. The CCPA is
-and-
d) Equipment upgrades common feedback from past presenters is that the CCPA
equipment upgrades that are required for the CCPA to remain competitive as a
performing arts centre. Items that were frequently mentioned include:
Sprung floor for the theatre and hall Video wall and 4K projector
Floor covering options (e.g., dance) Show electrical power and cabling
Theatrical and house lighting Seating enhancements
PA sound system Front of house booth
Modular staging New appliances
e) Mixed use local performing arts presenters emphasized that the CCPA must be
flexible and responsive to a variety of uses and performance art disciplines (e.g.,
theatre, music, dance, film, comedy, etc.).
f) Education and mentorship opportunities it was mentioned by several presenters
that the CCPA could be a unique and productive space for tech and music
performing arts ecosystem in the CCPA and Downtown Kitchener.
g) Marketing the venue local presenters commented that it was not easy to find
technical specifications or rental information for the CCPA.
h) Marketing support many presenter respondents shared that an area where they
surveys and one-on-one follow-up meetings identified that audience development
and shared marketing opportunities are priority needs for presenters.
i) Preferred vendors supporting local service providers was identified by some
presenters as an important priority for the new operator of the CCPA to consider.
Community Engagement Proposed Mandate for the CCPA
Vision, mission, and value statements are essential for all venues, but especially performing
arts centres. Unlike other venue types, performing arts centres serve a unique purpose
within our community, and have unique features and equipment that are vital and highly
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valued by arts organizations. Assets such as theatrical lighting, PA sound systems, staging,
Based on the results and information received through the engagement process as well
as referencing recommendations outlined in other City-supported research (i.e., Environics,
Bloomberg, etc.) staff have drafted the following vision, mission, and value statements to
establish a clear mandate that will guide the next operating model of the CCPA:
Vision Statement What does short and long-term success look like?
The Conrad Centre for the Performing Arts is a vibrant and active cultural hub where local
performing arts grow and thrive. A cultural venue where the community can participate.
Mission Statement What critical actions
Ensure the CCPA is accessible to a wide range of arts organizations, presenters, etc.
Communicate transparent and reasonable expectations while balancing the needs of
the local performing arts community.
Showcase a broad spectrum of performance art e.g., music, film, theatre, dance, and
comedy.
Focus on year-round programming and utilization featuring local talent, commercial
events, and memorable community experiences.
Create mentorship and learning opportunities for the local performing arts community.
Diversify revenue streams to create operational sustainability and generate funds for
capital reserves.
Use Key Performance Indicators (KPIs) that recognize and celebrate equity, utilization,
artist participation, and attendance.
Values What values will guide our actions?
Key value themes communicated throughout the consultation process suggest that the
CCPA needs to be: Accessible, Aspirational, Balanced, Equitable, Flexible, Inclusive,
Innovative, Responsive, Sustainable, and Transparent.
Staff recommend that the proposed vision, mission, and value statements are initially
adopted for the CCPA and then revisited by City staff after two seasons (June 30, 2026).
PART 2 OPERATING MODEL ANALYSIS
The CCPA is a sophisticated theatre venue. Critical to the ongoing success of the CCPA is
an appropriate governance model that addresses practical venue management needs as
well as the priorities that have been identified by the community through the engagement
process.
In tandem with community engagement, staff considered three operating models:
Non-profit led where a cultural organization leads most aspects of facility operation.
Government may subsidize the use of the facility through free rent and/or a service
fee to ensure the operator does not achieve an annual deficit.
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Commercial (private led) where a private company leads most aspects of facility
operation, with a high degree of autonomy in order to achieve an annual profit.
City-led where the City would lead most aspects of the facility operations and may
contract certain aspects to third-party groups.
As a reference, operating models used in the other City-owned culture and entertainment
venues include:
Kitchener Memorial Auditorium City-led operating model.
Centre In The Square Non-profit led.
Registry Theatre Non-profit led.
Each operating model option has its own inherent advantages and disadvantages, and the
purpose of this report is to recommend which operating model is best for the CCPA based
on the communicated needs of the local performing arts community and observations of its
current operation.
Analytical Approach Path of the Presenter
Through the consultation process, it was made clear that the new operating model needs to
reflecting the steps a presenter must work through
with the operator to bring a performance to life. Regardless of the event type (e.g., dance,
theatre, music, comedy, film, etc.), the typical path of a presenter when engaging with a
performing arts centre includes the following core venue management functions:
Scheduling
Costing
Contracting
Ticketing
Event Operations
Event Services
function and the advantages and
disadvantages of each operating model.
Path of the Presenter Scheduling
The most discussed item during in-person follow-up meetings with past/future presenters
was the importance of scheduling in the event intake process. Since there are only 365
days in the calendar and not all days are valued equally (e.g., Fridays are typically viewed
as being more valuable than Mondays) a lot of discussion was focused on calendar
management and allocation of dates. Specifically, who gets what dates and who is making
those decisions.
The following chart summarizes how the three different operating model options generally
approach scheduling decisions:
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Operating Model: Non-profit led Commercial City-led
Which groups typically
Community presenters Profitable events.A balance of community
receive scheduling and commercial events. presenters and
priority?
Sometimes the non-profitable events.
profits present their own
shows which can be
given priority.
Who are scheduling
Accountable to a board. Accountable to a Accountable to City
decision makers private owner or Council and ultimately
accountable to? board of directors. the public.
Who receives escalated Appeal to the board. Decision is final. Appeal to senior staff
scheduling concerns? and/or Council.
Given the importance of a fair, equitable and transparent scheduling process, staff
recommend a City-led scheduling approach. With communicated concerns of favouritism
(real or perceived), a City-led operating model can assist in developing a neutral scheduling
system.
Path of the Presenter Costing
The other critical item raised by past/future presenting groups was the overall cost of using
the CCPA. There is a shared desire for the CCPA to be affordable for presenters, but this
needs to be balanced with sustainability and not undercutting similar/competing venues.
The following chart summarizes how the three different operating models generally
approach costing and rate-setting decisions:
Operating Model: Non-profit led Commercial City-led
How are rental rates
Sustainable cost To achieve an annual Annual budget
determined? recovery with narrow return-on-investment. projections and fees
margin. approved by Council.
How are ancillary costs Cost recovery with Upcharge with high Cost recovery.
determined? narrow margin. margins.
Are there opportunities Possible, but often Less possible. Possible.
for community grants or
provided indirectly by
subsidies provided by
various levels of
the operator?
government.
Prior to the pandemic, staff consistently heard that the CCPA rates were inaccessible.
During the recovery stages of the pandemic, the City offered a grant to subsidize rental costs
by 50%. This translated into a significant increase in usage.
Given the importance of ensuring an accessible price point, staff recommend a City-led
operating model for costing decisions.
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Path of the Presenter Contracting
Contracting is a significant step in the path of the presenter because this activity captures
all expectations related to presenting an event in a legal agreement. Contracts between a
presenter and the venue operator outline all financial and operational deal points. As such,
the rental agreement serves as the foundation in the relationship between the presenter and
venue operator, and the contracting process itself will have a significant impact on how a
presenter experiences the venue.
The following chart summarizes how the three different operating models generally
approach contracting decisions:
Operating Model: Non-profit led Commercial City-led
General approach for Contracts tend to be Less flexibility for a Templates or other pre-
contracting performing
constructed in a more presenter. existing contracting
arts events.
flexible and presenter-methods are used (e.g.,
friendly way; less scheduling software with
restricted by risk built-in terms and
measures. conditions).
Presenter perception of Viewed as flexible and Viewed as focused Varied views from
a contractual forgiving. primarily on profit and flexible to inflexible, with
relationship protection of the an ability to appeal to
commercial City Council.
priorities.
Public perception of a
The public generally Presumed to be Presumed to be based
contractual relationship
understands the views based on financial on community values, to
between a presenter and
and opinions expressed gain with limited which they expect
the operator/venue.
are those of the regard for community Council to uphold.
presenter, and do not values.
necessarily represent
the values of the
operator/venue.
While a non-profit led approach would best suit the needs of presenters at the CCPA, staff
feel the City could develop a simple and flexible system while ensuring the appropriate
protections are in place for the Corporation.
Path of the Presenter Ticketing
Ticketing is the financial currency of a venue the financial mechanism that organizes how
people attend special events. A standard operating procedure and venue management best
practice for ticketing requires that the operator hold ticket funds in escrow i.e., holding all
ticket-related revenue in trust. Therefore, ticket revenue is held in trust by the operator until
the event has taken place, at which time settlement occurs with the presenter.
While creating data for future marketing activities is an important consideration for ticketing
systems, protecting the consumer should drive a ticketing model. A single ticketing platform
used by all CCPA presenters would establish consistency with the consumer, while ensuring
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that presenters have access to the information that is important to them (e.g., consumer
data).
As the City is in the process of working with all City-owned culture and entertainment venues
on a centralized ticketing strategy, staff recommend a City-led operating model for ticketing.
Path of the Presenter Event Operations
Once an event has been scheduled, contracted, and tickets go on sale, the sizable task of
ing a show to life incorporates sound, lighting, staging, video, and other
operational components. Event operations is generally very technical and there needs to
be a balance of listening to the presenter while finding creative solutions.
In addition to managing the technical needs of an event, the venue operator needs to work
with the presenter in an ongoing facilitator capacity to ensure that the expectations outlined
in the contract are delivered. For this stage in the path of the presenter, it is paramount to
have an effective operations team that can facilitate an event based on the expectations
outlined in the legal agreement as well as the technical/production rider.
The following chart summarizes how the three different operating models generally
approach event operations:
Operating Model: Non-profit led Commercial City-led
General approach to If an experienced Generally, an Understand the
managing event performing arts agreement is viewed importance of the
operations. organization, they will as a checklist of items expectations outlined in
understand the to be completed. the agreement.
importance of the Investment in the Investment in all event
expectations outlined in content depends on details depends on the
the agreement and tend the event operations experience of the event
to be invested in the team. operations team.
content being presented
and take a proactive
approach to event
operations.
Ability to predict the Having knowledge and Not always able to Ability to predict will
operational needs of a understanding of the predict operational depend on the skillset of
performing arts presented content allows needs. Will often the operational team.
presenter. a non-profit operator to refer to the contract
predict the event needs for direction.
of the presenter.
Performing arts centres are a sophisticated venue type, and with it comes a level of expertise
that is required when working directly with other presenters of performance art. A notable
theme communicated during the engagement process was the need to have an experienced
operator involved in event operations.
Staff recommend utilizing an experienced arts organization initially, transitioning to a City-
led model once competencies are developed.
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Path of the Presenter Event Services
The event services team acts as an account manager and will focus on tasks such as
administration, permits, event staffing, emergency procedures, as well as facilitating
merchandise, food and beverage sales, etc. Requiring a specialized skillset, event services
will provide a presenter with overall event file management, keeping track of all necessary
documentation.
In addition to the rental agreement, the event file might include the following:
Certificate of insurance Event settlement sheets
Event timeline Staffing schedule
Seating charts and diagrams Incident reports
Ticket audits Post-event evaluation
The following chart summarizes how the three different operating models generally
approach event services:
Operating Model: Non-profit led Commercial City-led
General approach to If an experienced Generally, an Understand the
managing event performing arts agreement is viewed importance of the
services. organization, they will as a checklist of items expectations outlined in
understand the to be completed. the agreement.
importance of the Investment in the Investment in the
agreement and tend to content depends on content depends on the
be invested in the the event services event services team.
content being presented team.
and take a proactive
approach.
Ability to predict the
Having knowledge and Not always able to Generally able to predict
event services needs of
understanding of the predict event services presenter needs but will
a performing arts presented content allows needs. depend on the event
presenter. the operator to predict services team.
the event services needs
of the presenter.
Staff recommends an experienced arts organization initially providing such services,
transitioning to a City-led model once competencies are developed.
Conclusion City-led
recommend a City-led operating model that initially utilizes the skills of a non-profit
organization during a transition period (i.e., while the City scales its resources to fully
operate).
The transition from a non-profit assisted to full City-operated model could look like this:
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Component: Initial End of Year 1 Ongoing
Scheduling City City City
Costing City City City
Contracting Non-Profit City City
Ticketing City City City
Operations Non-Profit Non-profit City
Event Services Non-Profit City City
This could be achieved by entering into a service agreement with an organization like Green
Light Arts who has experience operating the CCPA, experience with theatrical production,
and could provide mentor services to a new City team.
PART 3 FINANCIAL MODEL ANALYSIS
As noted through the community engagement, residents aspire to see the CCPA highly used
with accessible ticket pricing, while presenters are seeking accessible rental rates with
professional services. Prior to the pandemic, the CCPA would host approximately 80-105
days of programming. During pandemic recovery, the City subsidized rental rates by 50%,
increasing the usage to 142 days, demonstrating the price sensitivity of presenters.
It is common for theatres to either offer a low entry cost with limited services, or a higher
level of service with higher entry costs (i.e., rental rates and service fees). Unfortunately,
offering a lower cost of entry with high service levels can only be achieved either through a
high volume of rentals (which will take time to realize) and/or significant subsidization by the
City.
The following analyzes three financial models to determine the best approach for the CCPA.
Low Cost + Low Service
Under this financial model, the City would implement a lean staffing model to provide low
entry costs for presenters. A small team of permanent staff (e.g., program assistant and a
rental attendant) would be supported by part-time and occasional staff. In principle, the full-
time staff would be subsidized by the City, while part-time staff costs would be covered by
the presenter through rental fees.
Under this model, presenters would have two primary rental options:
a) Utilize a standard theatre configuration with pre-set lighting plots and existing sound
equipment. This plug-and-play approach would allow for limited customization,
limited operations support, and limited services provided to the presenter.
b) Any additional needs/customization would be on a fee-for-service basis, allowing the
presenter to scale their production needs to their budget (e.g., third-party production).
Pros:
Low cost to the taxbase (lower subsidy, fewer FTEs).
Provides low cost of entry and lower risk for presenters.
Presenters only pay for the additional services they need.
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Cons:
No marketing support for booked events.
No marketing efforts promoting the venue itself.
No full-time operations staff on site to take care of ongoing facility needs.
Limited support for presenters as they work through the event operations and event
services steps, which will likely lead to frustration for the presenter.
Presenters have noted that a fee-for-service (add-on) model can be challenging to
forecast costs.
Low service model may deter certain presenters.
The complexity of the CCPA makes it less ideal for a plug-and-play approach.
High Subsidy + High Service
Under this model, the City would implement a full staffing compliment expected of a
professional venue of this size. A team of permanent staff (e.g., venue manager, scheduling
associate, event associate, marketing associate, program assistant, facility operators, and
a rental attendant) would be supported by a smaller team of part-time and occasional staff.
Such a model would incur significant annual salary expenses, likely requiring a significant
public subsidy, that may be reduced as the volume of rentals increase. The City would
contract out certain services to a non-profit partner until it was able to recruit and develop
the required staff competencies.
Under this model, Council would set rental rates relative to the subsidy provided to achieve
a balanced annual budget.
Pros:
Presenter has predictability on costs not being charged for additional staffing.
Strong support for presenters as they work through the contracting, event operations,
and event services steps.
Team is driven to maximize use of the building with quality programming.
Full-time operations staff on site to take care of facility needs.
Full-time staff can focus on specific roles leading to higher productivity and efficiency.
More opportunities to develop expertise in venue management areas, leading to higher
quality work and greater consistency in performances and operations.
Full-time staff can provide more consistent and reliable customer service, improving
audience satisfaction and retention.
More staff can allow for expanded community engagement efforts, such as educational
programs, workshops, and partnerships with local organizations.
With more full-time staff, the theatre can increase the number and variety of
productions and events it offers, attracting a broader audience base.
Cons:
Significant public cost to operate the CCPA.
Salary heavy operation provides limited flexibility during challenging financial times.
Failure to generate a high volume of rentals would impact the ability to reduce the
subsidy over time.
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Pressure to reduce the public subsidy over time could result in increased fees,
impacting accessibility of the CCPA.
Hybrid Model
Under this model, the City would introduce a modest staffing team to provide both accessible
and high quality rental options. A team of permanent staff (e.g., venue manager, event
services supervisor and a facility operator) would be supported by a team of part-time and
occasional staff. In the short term, the City would partner with a non-profit organization as
staffing is scaled appropriately.
The City would need to provide an operating subsidy which can be more easily scaled to
the volume of rentals in a given year.
Pros:
Presenter has predictability on entry cost with fewer additional fees.
CCPA can accommodate a full range of presenting types, with services scaled to suit.
Presenters are supported by the City as they work through the contracting, event
operations, and event services steps.
Staffing costs to operate the CCPA will require a lesser public subsidy than high
service model.
City can scale its staffing investment over time.
Cons:
City staff may not achieve the high service levels that a presenter expects.
Limited marketing support for booked events and venue promotion.
Summary of Financial Models
The following chart summarizes the difference between the three different financial models.
Note: not all revenues and expenses are included.
Low Cost + Low Hybrid High Subsidy +
Service (Recommended) High Service
Human Resource Considerations
Anticipated number of new full-
1 3 7
time City staff
Anticipated number of new part-
1 (wages covered TBD (wages covered TBD
time City staff
by rental fees) by rental fees)
Anticipated additional staff
Numerous Occasional staff where Only when there are
occasional staff needed for larger specific program
(costs covered by scale productions. needs.
rental fees).
Financial Considerations
Projected rental revenue $50,000 $90,000 $150,000
(conservative estimates)
Salaries & Benefits (City) $119,000 $382,000 $793,000
Administration $54,000 $54,000 $99,000
Building expenses $80,000 $80,000 $113,000
City operating subsidy $253,000 $382,000 $790,000
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Opportunities for additional
Limited due to Staff would be focused Full staff compliment
revenue (e.g., food and capacity of 1 FTE. on generating rentals would enable
beverage, sponsorships, etc.)
with capacity to significant efforts to
pursue food and generate additional
beverage, etc. revenue.
Presenter Feedback Considerations
Support for presenters
Limited support. Reasonable support. Strong support with
full staff compliment.
Marketing the CCPA (the venue Limited ability to Manager of Manager of
itself) market the venue CCPA/Venues CCPA/Venues
based on staff promotes the venue promotes the venue
resources. itself. itself.
Marketing support for Limited support. Use of existing and Dedicated City staff
presenters developing channels. member responsible
for marketing.
Conclusion
Based on the three financial model options and feedback collected during the engagement
process, staff recommend utilizing the hybrid model. The hybrid model enables
accessibility, provides a range of rental options, provides reasonable levels of service,
supports rental growth, all while balancing cost to the taxpayer. As revenues increase, the
City can consider adding additional services.
In the hybrid financial model, staff recommend three new FTEs, resulting in an operating
budget impact of $382K. High level role functions as follows:
Role #1
Oversees CCPA as well as other City-operated culture venues (e.g., Victoria Park
Pavilion).
Leads business attraction and rental growth.
Manages the overall schedule and contracting.
Role #2
Acts as account lead and primary contact for the client.
Fulfilling contract obligations and coordinating front of house staff (e.g., ushers).
Role #3
Production support for back of house functions.
CITY-LED OPERATING MODEL ADDITIONAL CONSIDERATIONS
Standard Operating Procedures
Staff recommend that a standard operating procedure (SOP) for facility allocation is
developed and published openly. The SOP would support equitable access to the facility
because there would be transparency in the event intake and scheduling process, and the
information would be available to everyone.
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Important sections of the proposed facility allocation SOP would include:
Purpose and objectives (e.g., maximizing utilization)
Definition of groups (e.g., how groups are identified in the scheduling process)
General administration (e.g., how to submit requests)
Responsibility (e.g., who is responsible for decisions)
Allocation and distribution (e.g., the order of operations for scheduling)
Timing of allocation (e.g., when scheduling decisions are made)
Conflict resolution
Support from A Non-Profit Organization
Within the operating models, staff have identified the need to work with a non-profit
organization with experience in performance venues. Green Light Arts (GLA) provided
theatre management support to the KW Symphony and has supported the City in the
operation of the CCPA since October 2023.
The relationship between City staff and GLA is positive and productive, and arts
orts. Given their
experience with the CCPA, staff recommend continuing to utilize GLA to deliver key
mentorship services within the hybrid model, until June 30, 2026. This would ensure
continuity and knowledge transfer as well as mentor support for emerging arts organizations.
Note: In the City-led hybrid operating model, Green Light Arts (GLA) would continue to
perform and assist with operational functions while the CCPA transitions to be fully operated
by the City.
As the City scales-up its operation, GLA would move from an operating role to a mentorship
role where incoming rental groups can lean into GLA as a support service. For example,
l theatre (e.g., operations, marketing, ticketing, etc.).
In exchange for mentorship services, the City could provide GLA with opportunities at the
CCPA that equate to the mentorship value provided (e.g., office space, rental rates, event
dates) as well as an adjusted fee, if required.
Following the initial service period, staff would have a better understanding of the mentoring
needs and would issue a public request-for-proposals to allow other community arts
organizations to bid on providing these services.
City-Presented Performances
To ensure the CCPA becomes fully utilized, the City cannot rely solely on rentals from third
party organizations/presenters. The City should develop its own programming, similar to
how it programs places like The Aud, the Kitchener Market, community centres, etc. This
could come in the form of a live music or comedy series, booking touring artists, etc. To do
so, staff will need a budget line which allows for moderate risk taking when booking
prospective shows.
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Capital Improvements to the CCPA
Although the CCPA is in adequate condition, there are state-of-good-repair (SOGR) needs
that have been identified in recent Building Condition Assessments. Consultants will be
as needed (e.g., elevator, floor
loading, accessibility, rigging and hanging load capacity, etc.).
Building enhancements for the CCPA that have been suggested from the community
engagement work include improved sound and lighting systems, seating, and a
reimagination of the lobby and bar area to create a more inviting, contemporary experience.
IMPLEMENTATION
If Council were to approve a City-led hybrid operating model, the following transitional
changes would need to occur in the immediate term:
First 6-months
mutual agreement) to provide continuity of theatre operations. During this time, the City
would begin recruitment of the full-time staff compliment. Staff would develop all the
necessary fee schedules, operating procedures, etc. Staff would refine the operating
agreement with GLA to reflect the new service delivery expectations.
2025 Budget
As part of the 2025 budget, staff will provide new cost centre budgets to support the
annual operations and ongoing capital needs. In addition, staff will propose one-time
capital improvement needs to modernize the facility.
Annual Reporting
For the first 2 years of operations, staff will provide Council with annual updates to ensure
mandate is being met. This will provide an opportunity to evaluate and adjust the services
provided by City staff versus the third-party arts organization.
STRATEGIC PLAN ALIGNMENT:
This report supports Creating an Economically-Thriving City Together: Focuses on
growing an agile, diverse local economy powered by talented entrepreneurs, workers
& artists; creating opportunities for everyone and a resilient future that propels our
city forward.
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FINANCIAL IMPLICATIONS:
Operating Budget -High-level operating costs and projected revenues are included in the
table under Part 3 and vary depending on the model selected. These numbers would need
to be refined annually as the City gains more experience operating the facility. Based on
the recommended model, staff project an annual operating cost of $382,000.
Presently, Council is offsetting operating costs at the CCPA relative to annual grant funding
earmarked for the KW Symphony. As the future of the KW Symphony and their need for
funding remains uncertain, Council will need to consider adding new funding. As such, it is
recommended that the financial implications of the CCPA be referred to the 2025 budget
process.
Capital Budget the City currently does not have budget allocated to support capital
improvements at the CCPA. Projections for capital needs would need to be integrated into
the future capital forecast.
COMMUNITY ENGAGEMENT:
INFORM nce of
the council / committee meeting.
CONSULT Staff have surveyed past/future audience members as well as past/future
presenters of performance art. Additionally, staff have consulted one-on-one with
presenters who requested a follow-up meeting.
COLLABORATE Green Light Arts has provided operating support at the CCPA for the City
since late 2023. During this time, the City has gained significant insights from their
leadership and knowledge of the venue.
PREVIOUS REPORTS/AUTHORITIES:
DSD-2021-167 - Conrad Center for the Performing Arts Interim Operating Model
APPROVED BY: Dan Chapman, CAO
ATTACHMENTS:
Attachment A CCPA Past/Future Audience Member Survey and Responses
Attachment B CCPA Past/Future Presenter Survey and Responses
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