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Establish Performing Arts Venues Workgroup to evaluate management of P’5 arts facilities

Resolution

WHEREAS, City-owned performing arts venues, including Antoinette Hatfield Hall (Brunish, Newmark, and Winningstad Theatres), the Arlene Schnitzer Concert Hall, and the Keller Auditorium, are managed by Portland'5 Centers for the Arts (Portland’5) under the oversight of the Metropolitan Exposition Recreation Commission (MERC) through Intergovernmental Agreements (IGAs) with Metro; and

WHEREAS, the City of Portland entered into a Consolidation Agreement with Metro in 1989, last amended in 2013, to operate and maintain arts facilities owned by the City; and

WHEREAS, these and subsequent agreements were created to support regional tourism and the hospitality industry, and to maximize the economic benefits of cultural and spectator facilities for the Portland-Multnomah County area; and

WHEREAS, in 1993, the City removed the Portland Memorial Coliseum complex (Veterans Memorial Coliseum), and in 2000 removed Civic Stadium (Providence Park), from the Consolidation Agreement through amendments; and

WHEREAS, a 2022 Metro audit of the Portland’5 IGAs found issues including a governance model which is difficult to navigate, a need for a shared understanding between the IGA parties regarding the physical condition and maintenance of Portland’5 theaters, as well as an absence of a clear funding plan for maintenance, support for arts organizations, and diversity, equity, and inclusion efforts; and

WHEREAS, City-owned performing arts facilities are essential to the work of resident and featured arts organizations, including Broadway in Portland, Literary Arts, Metropolitan Youth Symphony, Oregon Ballet Theatre, Oregon Children’s Theatre, Oregon Symphony, Portland Opera, Portland Youth Philharmonic, Stumptown Stages, White Bird Dance, as well as many non-profit and for-profit users of the facilities; and

WHEREAS, the U.S. Bureau of Economic Analysis reported that Oregon’s arts and culture sector contributed $8 billion to the state’s economy in 2020, accounting for 3.3% of the state’s GDP, 60,994 jobs, and total compensation of $4.8 billion; and

WHEREAS, the 2023 report by Americans for the Arts, Arts & Economic Prosperity 6 (AEP6), found that Portland’s arts and culture nonprofit organizations alone generated $400 million in spending, representing nearly half of the state’s nonprofit arts-related spending in 2022, and contributed $72 million to local, state, and federal revenues in Multnomah County alone; and

WHEREAS, the fiscal year 2023 Economic Impact report from Crossroads Consulting, found that Portland’5 generated $77 million in total spending, supported 520 full-time and part-time jobs, and contributed $4.1 million in local and state taxes; and

WHEREAS, Portland City Council accepted Our Creative Future on May 22, 2024, charging the Office of Arts & Culture with implementing the tri-county framework to advance culture, creativity, and the arts within Clackamas, Multnomah, and Washington Counties; and

WHEREAS, Our Creative Future Goals and Strategies 1.5, 2.5, and 3.3 identified the need to address barriers to facility and space use, affordable arts space programs, technical assistance, capital grants, increased accessibility, and use of empty commercial spaces, and recommended that the stakeholders consider public/private partnerships to provide resources and leadership for arts and culture in the region; and

WHEREAS, on July 1, 2024, Mayor Wheeler delegated oversight of City bureaus and Service Areas to the City Administrator and six Deputy City Administrators, including the Deputy City Administrator of the Vibrant Communities Service Area, responsible for Portland Parks & Recreation, Portland Children’s Levy, and the Office of Arts & Culture; and

WHEREAS, the Office of Arts & Culture, formally established on July 1, 2024, began administrating oversight of City-owned arts facilities and managing the City’s General Operating Support (GOS) grant program, which provides unrestricted funding to resident and featured companies of the Portland’5 theaters, along with 70 additional arts and culture organizations; and

WHEREAS, on October 10, 2024, City Council adopted Resolution No. 37680, directing City staff to conduct a Market Feasibility Analysis as part of the Future of Keller project – assessing seating capacity, financial models, project timelines, and future operating model options for two Broadway-capable venues; and

WHEREAS, Oregon Governor Tina Kotek has prioritized arts and culture, and the Governor’s Central City Task Force recommended that the City of Portland "Make downtown a worthy destination"; and

WHEREAS, the sustainability of publicly-owned arts facilities, along with the financial and institutional health of Portland’s arts and culture organizations, is central to the broader economic vitality and livability of the Portland area and the State; and

WHEREAS, increased operating and capital costs, as well as a growing major maintenance backlog, create challenges for the City and Metro – as owner and operator of the facilities – as well as for P’5 users to whom increased costs are passed; and

WHEREAS, establishing a Performing Arts Venues Workgroup will provide an opportunity to review and recommend improvements to the operations, maintenance, and long-term planning of City-owned arts facilities, and ensure alignment with regional goals for arts, cultural enrichment, and economic development; and

WHEREAS, the Metro Regional Council and Portland City Council agree that Portland’s arts and culture sector is key to local, regional and statewide economic recovery and revitalization goals.

NOW, THEREFORE, BE IT RESOLVED, that the Deputy City Administrator of the Vibrant Communities Service Area is directed to work with the Metro Chief Operating Officer to convene a Performing Arts Venue Workgroup, which will include staff from Metro and the City of Portland, representatives from the regional arts and culture community, including users and visitors of City-owned arts facilities and labor partners; and

BE IT FURTHER RESOLVED, that this Workgroup will consider opportunities and challenges to both immediate and long-term operations, maintenance, and planning of these venues, and to align management and operations with regional goals for economic development and cultural enrichment; and

BE IT FURTHER RESOLVED, that project staff will engage contracted subject matter expertise to conduct a business model and governance analysis – which will explore alternative operating models and recommend a model to best serve these venues in the short term; and 

BE IT FURTHER RESOLVED, that all appropriate Service Area staff are directed to collaborate with the Deputy City Administrator of the Vibrant Communities Service Area in this effort; and

BE IT FURTHER RESOLVED, that the Deputy City Administrator for Vibrant Communities is directed to present recommendations regarding short-term opportunities and challenges to the City Administrator by June 30, 2025; and

BE IT FURTHER RESOLVED, that the Deputy City Administrator for Vibrant Communities is directed to present recommendations regarding significant conditions that require renegotiating the IGA to the City Administrator by June 30, 2025. 

Impact Statement

Purpose of Proposed Legislation and Background Information

The purpose of this legislation is to establish the Performing Arts Venues Workgroup to evaluate the operations, maintenance, and long-term planning of City-owned Portland'5 Centers for the Arts buildings: Antoinette Hatfield Hall, Arlene Schnitzer Concert Hall, and Keller Auditorium. This workgroup will explore operational challenges and opportunities and will focus on ensuring operations of publicly-owned arts facilities are aligned with regional goals for cultural enrichment and economic development. 

The creation of this workgroup follows Metro's 2022 audit of Portland'5 IGAs, which identified challenges navigating governance, funding, and facility maintenance. Additionally, it complements ongoing efforts, including the Future of Keller Project (Resolution #37680), to assess and improve publicly-owned arts venues for both the short- and long-term.

Financial and Budgetary Impacts

The immediate financial impacts of this resolution are limited to the administrative costs associated with forming and operating the Performing Arts Venues Workgroup. The resolution also calls for contracting subject matter experts to conduct a business model and governance analysis, which may incur additional costs.

Long-term financial impacts may arise from the workgroup's recommendations. These could include proposals for capital investments, increased maintenance budgets, or changes to the current funding model for City-owned arts venues.

Economic and Real Estate Development Impacts

Portland’s performing arts venues are significant drivers of economic activity in Oregon. Each year, they attract thousands of visitors, supporting local businesses such as restaurants, hotels, and retail establishments. In 2023, Portland'5 alone generated $77 million in total spending and supported 520 jobs. Additionally, the arts sector contributed $8 billion to Oregon’s economy, highlighting the sector’s importance to both the local and regional economy.

The workgroup established by this resolution will explore new approaches to ensure the sustainability of these economic benefits by improving operational challenges and supporting the long-term vitality of Portland’s arts venues. The workgroup's recommendations will explore synergy with regional economic development goals to further enhance the arts' role in driving economic growth.

Community Impacts and Community Involvement

City-owned performing arts venues play a central role in Portland’s arts and culture sector. These venues serve as critical spaces for performances and gatherings by local arts organizations, including Broadway in Portland, Oregon Symphony, Portland Opera, and many, many more. This resolution acknowledges the importance of these spaces and seeks to ensure that the community’s needs are responded to in operations and long-term planning.

The Performing Arts Venues Workgroup will engage various stakeholders, including representatives from the arts community, labor partners, venue users, and visitors.

100% Renewable Goal

N/A

Financial and Budget Analysis

This Resolution establishes a workgroup that may incur costs associated with administering the group and contracting subject matter experts to make recommendations related to performing arts venues.

Based on a similar contract for Keller Auditorium, an estimate for contractual costs ranges between $100,000 and $150,000. Existing budgeted resources will be used if costs are incurred, from both the General Fund and the Arts Access Fund.

Document History

Item 950 Time Certain in October 30-31, 2024 Council Agenda

City Council

Adopted

  • Aye (4):
    • Mingus Mapps
    • Dan Ryan
    • Rene Gonzalez
    • Ted Wheeler
  • Absent (1):
    • Carmen Rubio

City department

Contact

Darion Jones

Policy Advisor & Constituent Relations Coordinator

Requested Agenda Type

Time Certain

Date and Time Information

Requested Council Date
Requested Start Time
2:00 pm
Time Requested
45 minutes
Confirmed Time Certain