Agreement on Performing Arts Center faces yet another postponement.

Excerpt on Sarasota Performing Arts Center Development

The quest for approval to move forward with the design phase of the new Sarasota Performing Arts Center (SPAC) remains uncertain as the public-private partnership navigates a complex landscape. Currently, the implementation agreement between the city and the Sarasota Performing Arts Foundation is still under revision, necessitating careful scrutiny of its terms by the Sarasota City Commission.

As of now, the status is “yellow,” indicating that while discussions are ongoing, a resolution has not yet been achieved. Following an extended meeting, plans were made to revisit the agreement for further adjustments at a special meeting set to occur before the upcoming City Commission meeting on May 5.

A significant portion of the conversation revolved around the project’s financial implications, with the current cost estimates reaching $365 million, or $407 million when factoring in escalation. The funding model envisions a 50-50 split between local government and the Foundation, though the level of Sarasota County’s involvement remains to be confirmed.

Key Information

• Project Cost: $365 million ($407 million with escalation)
• Funding Split: 50% local government, 50% Sarasota Performing Arts Foundation
• Potential County Involvement: Currently uncertain
• Revenue Sources: TIF revenues from The Bay park area, penny tax, and grants
• Projected TIF Revenue: $376 million by 2049, potentially $775 million based on improvements in the district

Public dollars will primarily come from revenues generated through the tax increment financing (TIF) district surrounding The Bay park, which is the proposed site for SPAC. Other public funding avenues include penny tax revenues and grants from various governmental levels. If the county participates, funding would be shared equally between city and county entities.

The interlocal agreement allocates TIF revenue towards park improvements, capital projects, and infrastructure enhancements around the park. Based on current property tax projections for 2024, the TIF could generate $376 million from both the city and county, through 2049. Should the city need to shoulder the costs alone, its obligation would amount to $188 million, excluding its commitment to The Bay park’s ongoing development.

The city’s anticipated total obligation for SPAC, should it proceed without county involvement, is expected to exceed $383 million, accounting for $160 million in financing costs, parking facilities, and site preparation expenses.

Financial models show an anticipated $27 million revenue stream generated from a $5 ticket surcharge, earmarked for revenue bonds linked to parking facilities.

However, it’s important to note that the TIF revenue relies on existing tax values. Financial consultant Alex Stokes from HR&A Advisors anticipates the TIF could yield $775 million by 2049, with the city receiving roughly $387.5 million from those funds. This projection incorporates several developments, including residential projects and the redevelopment of the Hyatt Regency within the TIF district.

Discussions on philanthropy highlighted that the Foundation cannot initiate fundraising efforts until there is demonstrable commitment from the city. Foundation CEO Tania Castroverde Moskalenko emphasized that potential donors are hesitant to contribute without clear signals of city support.

A location has been considered for potential redesign, south of the boat basin west of 10th Street. The current proposed design features a primary 2,700-seat theater positioned on part of the boat launch parking lot at Centennial Park.

During the meeting, city officials expressed the necessity to ensure the functional integrity of the design before approving the transition to the next phase of development. Project consultant Cortez Crosby underscored the importance of delivering both functional and aesthetically pleasing structures.

Renzo Piano’s architect Kerry Joyce, present at the meeting, reiterated the non-linear nature of the design process, assuring city officials that ongoing concerns would be adequately addressed in subsequent phases.