LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SAENGER THEATRE - SHUTTERED VENUE OPERATIONS GRANT, GRANT NO. SBAHQ21SV001961
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RECOMMENDATION:
recommendation
That City Council ratify the acceptance of the Shuttered Venue Operations (“SVO”) Grant SBAHQ21SV001961 in the amount of $662,016.15 to help offset lost revenue at the Saenger Theatre as a result of the COVID-19 Public Health Emergency. Further, That City Council adopt a supplemental budget resolution appropriating the grant funds.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
The Pensacola Saenger Theatre is a Historic Landmark theater, which is owned by the City of Pensacola. The Saenger Theatre has operated as Pensacola’s Home for the Performing Arts since September 26, 1981. The City contracts with ASM Global, a professional facility manager, for the day-to-day operations of the facility and most of its operating funds come from fees collected from various arts organizations that use the theatre.
The COVID-19 Public Health Emergency required the Saenger Theatre to cease operations for several months beginning in the spring of 2020 and although the venue has since re-opened, the seating capacities have been reduced to comply with CDC guidelines for social distancing. This has limited the ability to generate revenues to sustain the operations of the venue. While SMG has reduced cost to help offset the loss in revenues, it is anticipated that Saenger Theatre will operate at a net loss for the year ending September 30, 2021 in excess of the $150,000 annual subsidy. The agreement with ASM Global requires the City to cover any loss incurred. In an effort to fund the anticipated losses, the City applied for the Shuttered Venue Operations (“SVO”) Grant.
On July 6, 2021, the City was awarded the SVO Grant in the amount of $662,016.15. The grant will help offset lost revenue at the Saenger Theatre as a result of the COVID-19 Public Health Emergency. This funding may be used to reimburse allowable expenses back to March 1, 2020 as well as fund allowable expenses through December 31, 2021. Allowable expenses include, but are not limited to, payroll cost, utility payments, insurance payments and ordinary and necessary business expenses, including maintenance cost.
The City’s Financial Planning and Administration Policy requires grants that equal $25,000 or more in total expenditures to have City Council approval prior to grant acceptance. Due to the time restrictions imposed by the grantor, City Council approval was not able to be obtained prior to award acceptance. The grant was awarded on July 6, 2021 and the City was required to accept the award by July 14, 2021 or the funds would be lost. In order to meet the deadline, the City accepted the award on July 14, 2021 and request that City Council ratify the acceptance of the Shuttered Venue Operations Grant. The grant does not require any local match.
PRIOR ACTION:
None
FUNDING:
Budget: $ 662,017.00 SVO Grant
Actual: $ 662,016.15 Saenger Theatre Operating Expenditures
FINANCIAL IMPACT:
Adoption of a Supplemental Budget Resolution will appropriate the grant funds. Funds will be provided on a reimbursable basis for operating expenses that have been incurred and paid for by the Saenger Theatre between March 1, 2020 and December 31, 2021.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
7/23/2021
STAFF CONTACT:
Keith Wilkins, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1. SVO Grant Award
PRESENTATION: No end