Preliminary Feasibility Report

Sarasota, Florida
Prepared for
with funding support from
The City of Sarasota
The Sarasota Alliance for Historic Preservation
The Nancy Schneider Treib emorial Fund
of the Community Foundation of Sarasota County
National !ndowment for the Arts
May 2014
ARTSPACE PROJECTS, INC.
"#$ Third Avenue N%& Suite '$$
inneapolis& N ##'$(
)("%***%+$("
www%artspace%org
,ntroduction
arasota is located on the Gulf Coast of Florida, an hours drive south of the
Tampa-St. Petersburg metropolitan area. A uic! glance at Sarasotas "#i!i$
page tells %ou #hat %ou need to !no# about ho# the communit% brands itself&
"The area is reno#ned for its cultural and environmental amenities, beaches, resorts,
connections to the 'ingling famil%, and its school of architecture.$ (ndeed, Sarasota is
teeming #ith cultural amenities rare in a communit% of )),*** +though the ,orth Port-
Sarasota-.radenton /etropolitan Statistical Area population is more than 01*,***2.
These include an orchestra, opera, several theaters, a performing arts center, a ne#
contemporar% art museum +S/3A2, the 'ingling College of Art 4 5esign, several art
centers +one o#ned b% the Cit%2, the /arietta /useum of Art 4 6hims%, the 'ingling
/useum campus, and three other colleges and universities #ith art programs +7niversit%
of South Florida, The Florida State 7niversit%8Asolo Conservator% for Actor Training or
FS78Asolo Conservator%, and ,e# College of Florida2.
S
These institutions are one reason #h% Sarasotas population is %ounger than those of its
nearb% urban peers. (ndeed, onl% 99: of its population is over the age of ;). (n nearb%
,aples, b% contrast, )*: of the residents are over ;). 6ith thousands of students
graduating #ith degrees in the creative realm, it is no #onder that Sarasota #ants and
needs to find #a%s to retain its %oung adults as #ell as to continue strengthening its focus
on arts and culture for people of all ages. ,evertheless, the median age in the Sarasota
metropolitan area is the oldest of an% mid- to large-si<e region in America, #hich
supports the argument that non-residential studio space is a significant need.
/ore than ),*** nonprofit organi<ations, =,)** of #hich are focused on the arts, are
based in the Sarasota area. The id%llic climate and the significant influence of the
'ingling .rothers have fostered a supportive environment for artists and arts
organi<ations. Sarasota has also built a deep philanthropic communit%.
Sarasotas City Hall, designed by Jack est in !"##, is a series
o$ interconnected rectang%lar s&a'es. It is considered a 'ri(e
e)a('le o$ t&e Sarasota Sc&ool o$ Arc&itect%re.
1
Sarasotas largest emplo%er is the municipal and count% government sector, follo#ed b%
the school district, .oars >ead meats, and the nonprofit sector. (t #as clear during our
visit that entrepreneurs dominate the landscape, so that rather than having Fortune )**
companies, Sarasota is peppered #ith creative8entrepreneurial individuals #ho are self-
emplo%ed or operate small businesses.
Sarasota is reinventing itself, as all
d%namic communities tend to do from
time to time. Part of this process is
focused along 7.S. >igh#a% ?=, long
!no#n as the Tamiami Trail because it
connects Tampa to /iami. .efore the
federal interstate high#a% s%stem #as
built in the =@;*s, the Tamiami Trail
#as Sarasotas maAor north8south
thoroughfare, and it remains a bus%
arter%. The primar% issue that Artspace
#as as!ed to address is the possibilit% of
creating space for artists as a catal%st
proAect for redevelopment along ,orth
Trail, a section of >igh#a% ?= that #as
once Sarasotas "/ain Street.$ Bi!e
other historic /ain Street high#a%s
across the countr%, ,orth Trail is still
dotted #ith old motels that predate the interstate eraC man% are still in use. The ,orth
Trail 'edevelopment Partnership, formed in 1**@ b% then-/a%or 'ichard Clapp as a tas!
force comprised of local citi<ens to stud%, understand and #or! to facilitate positive
redevelopment of the ,orth Trail, is #or!ing on ever%thing from <oning +heading to#ard
a form-based code2 to streetscape improvements, from bus rapid transit to bric!s-and-
mortar proAects.
Given these ne# directions and communit% assets, it is not surprising that the Cit%s
Cultural Plan, dating from 1**;, is being revisited. Cit% officials recogni<e that b%
providing affordable, sustainable space for artists, Sarasota can build its creative
econom% on a foundation that is alread% strong. The !e% is immediate intervention,
especiall% as it relates to affordabilit%. And #e had a strong sense that man% sta!eholder
groups in the communit% understand that the creative econom% is the ver% essence of
#hat ma!es Sarasota a desirable place to live.
A *intage (arketing 'iece $or Sarasota, +t&e
o%tstanding city on one o$ t&e (ost %n%s%al
scenic &ig&,ays in t&e ,orld- . t&at is, t&e
Ta(ia(i Trail.
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Artspace came to Sarasota at the instigation of a local citi<en, Deronica /organ, #ho has
done much for the local preservation movement and #ho is deepl% tied to leadership in
the area. 6or!ing for more than a %ear, /s. /organ and the local organi<ing committee
#ere able to bring to the table a d%namic assembl% of people representing man%
sta!eholder groups and interests. These included the ,orth Trail 'edevelopment
Partnership, the Arts and Culture Alliance of Sarasota Count%, the Communit%
Foundation of Sarasota Count%, the Cit% of Sarasota, and the Sarasota Alliance for
>istoric Preservation. 3ur scope of #or! included a series of focus groups, visits to
potential sites, meetings #ith !e% sta!eholders, and a public forum. The visit too! place
April @-=*, 1*=?. Artspace #as represented b% 6end% >olmes, Senior Dice President,
Consulting and Strategic Partnerships, and Stace% /ic!elson, Dice President,
Government 'elations.
This report contains our observations, findings and recommendations based on #hat #e
sa# and heard over t#o da%s in Sarasota. (t is also informed b% !no#ledge #e have
gained #or!ing in nearb% communities and eEperiences of other cities around the 7nited
States that have invested in affordable housing and other facilities for artists. 6e believe
that those eEperiences provide a useful conteEt for evaluating the feasibilit% and
importance of artist spaces in Sarasota. (n that regard, #e offer the follo#ing thoughts
and observations&
/ulti-tenant, multi-use creative spaces generate economic revitali<ation and
development. Fver% proAect provides Aob opportunities before, during, and after
construction.
Fver% independent artist is, in effect, the o#ner8operator of a cottage industr%,
generating economic activit% b% selling products or services, purchasing
euipment and supplies, pa%ing taEes, and other#ise contributing to the local
econom%.
To create affordable live8#or! housing for artists
=
#hose long-term affordabilit%
is guaranteed b% covenants is to create and sustain an authentic communit% of
local artists #ho collaborate not onl% #ith one another but also #ith other local,
national, and international artists.
=
.% "affordable live8#or! housing for artists,$ #e refer specificall% to the !ind of rental housing that
Artspace has been developing around the countr% for the last 1) %ears. Artspaces 1G operating
live8#or! proAects are apartment buildings in #hich each rental unit has additional space - t%picall%
=** to =)* suare feet - that is designed for use as a studio b% the resident artist. 3ur proAects feature
other amenities as #ell, including high ceilings, large #indo#s, #ide door#a%s, and durable surfaces
in ever% unitC and communit% rooms that serve as gathering places and galleries.
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Arts proAects help preserve old buildings, stabili<e older neighborhoods and
revitali<e vacant and underutili<ed properties. Arts proAects also help preserve
cultural heritage b% providing places #here cultural art forms can be passed from
one generation to the neEt.
Arts facilit% proAects are catal%sts for private and public investment, such as
faHade improvements and general beautification, in the surrounding area.
These proAects create permanent communit% spaces that give resident artists
opportunities to interact #ith the public through galler% events, demonstrations,
performances, and installations, and give the larger arts communit% opportunities
to sho#case their #or!.
Artists are good neighbors and active communit% members. /an% artists
collaborate #ith the larger educational, cultural, and business communities as
teachers, adAunct professors, and volunteers #ith %outh and cultural organi<ations.
6e ac!no#ledge and eEtend our gratitude to the communit% and to the arts and business
leaders #ho, through their planning and participation, laid the ground#or! for a
successful t#o da%s. Special than!s to Deronica /organ, our feasibilit% stud% championC
Sarasota Arts Alliance FEecutive 5irector Iim Shirle%C 5o#nto#n Fconomic
5evelopment Coordinator ,orm GollubC and Chair Ia% Patel and Dice Chair 5avid
/orriss of the ,orth Trail 'edevelopment Partnership, for their visioning efforts and
thoughtful input into the process. These local leaders are essential to the future success of
an% effort Artspace might underta!e in Sarasota.
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Findings
uring a Preliminar% Feasibilit% Disit, Artspace gathers information in siE !e%
areas& proAect concept, arts mar!et, site feasibilit%, financial feasibilit%, local
leadership, and sustainable communit% impact. /
(f the proAect concept has been determined, #e evaluate it in the conteEt of other factors.
For eEample, if the communit% #ishes to adapt a particular building for use as an arts
facilit%, #e consider #hether the building is structurall% sound, suitable for the intended
use, for sale at a reasonable price, and so on. 6e as!, too, #hether the proAect concept
appears appropriate to the needs of the communit%. Are there enough artists in the area
#ho need and ualif% for affordable live8#or! space to Austif% the time and eEpense of
developing a proAectJ (s the difference bet#een mar!et rate and affordable rents sufficient
to ma!e a live8#or! proAect an attractive option for artists of lo# and moderate incomeJ
.ecause our business model reuires substantial civic investment as #ell as fundraising
in the private sector, #e as! #hether the communit% has the financial resources and the
#ill to ma!e a significant philanthropic investment in the proAect. 6e as! #hether there
are local leaders #illing and able to advocate for the proAect in a variet% of #a%s. Finall%,
#e as! #hether the proAect, if built, is capable of ma!ing an important difference to the
communit% in both the short and long term. 6hile these are not the onl% factors #e
consider in ma!ing recommendations, the% help us frame the discussion.
PROJECT CONCEPT
/an% communities have a clear proAect concept in mind before the% contact Artspace.
.uffalo, ,e# Kor!, for eEample, #as interested in a live8#or! proAect to catal%<e
development in an economicall% challenged neighborhood. .rainerd, /innesota, #anted
to find a use for a Aunior high school that #as being replaced b% a ne# facilit%. (n Santa
Cru<, California, #here real estate values are among the highest in the countr%, the goal
#as to !eep artists from being priced out of the communit%.
(n Sarasota, #e found a shared desire among the Cit%s business, arts, communit%, and
civic leaders to continue incorporating the arts into the economic miE and the overall plan
for sustainable gro#th, #hile advancing and promoting the cultural and artistic traditions
T&e Ringling 0%se%( o$ Art in Sarasota
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that are core to Sarasotas identit%. The Cit% has begun la%ing the ground#or! for this
vision through form-based <oning, at least along >igh#a% ?=, #hich #ill allo# for
greater fleEibilit% in land uses and densit%. Since Artspaces primar% focus #as on the
,orth Trail area, #e #ere responding to the Cit%s desire for continued development
along the corridor - especiall% developments that have the potential to be catal%tic in
nature. 6e recogni<e, too, that the !e% civic and communit% goals of an% proAect are to
catal%<e additional gro#th and to retain and attract artists, thereb% continuing to shape
Sarasotas future as a communit% deepl% invested in the po#er of the arts.
The Cit% is
specificall%
interested in the
redevelopment
potential of one or
more of the t#o-
stor% motor
lodges along the
,orth Trail.
Although these properties #ould be eEpensive to acuire, the Cit%s vision for
transforming them into arts facilities has considerable appeal. 6e are a#are of one such
motor lodge conversion to living space for artists& the 3asis on Grand in PhoeniE,
Ari<ona. There the developer converted a @@-room =@)*s-era motor lodge into ;* units of
living space for artists at a cost of L) million. Although the individual units are small -
the% range from 911 to 0=? suare feet +#ith rents from L?*@ to L;G@2 - and lac! studios,
proAect amenities include shared #or!ing spaces and a communit% galler%. 3asis on
Grand is considered a "gate#a%$ proAect near a light rail corridor and an eEisting arts
communit%.
Artspaces model for developing live8#or! artist facilities utili<es Bo# (ncome >ousing
TaE Credits +B(>TC2 as a primar% funding tool. 6hile this model ensures long-term
affordabilit% b% subsidi<ing the living spaces on the front end, it is most effective in
communities #here the mar!et rate cost of housing is high compared to affordable rents
+#hich are set b% the 7.S. 5epartment of >ousing and 7rban 5evelopment2.
Sarasota appears to fit that description& affordable space for creative people has long been
#idel% available, but affordabilit% is increasingl% becoming an issue. A case in point is
To#les Court, #hose "venerable moss-draped oa! treesMhave shaded and protected this
historic enclave of bungalo#s and cottages for nearl% a centur%,$ as the To#les #ebsite
describes it. 6hat #as once a live8#or! colon% still has lovel% #or!ing studio spaces, but
A (arketing 'iece $or Oasis on 1rand, a (otor lodge con*ersion 'ro2ect
in P&oeni), Ari3ona
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rents have risen and for man% if not most of Sarasotas artists its spaces are no longer
affordable. +See ###.to#lescourt.com for details.2
The specific proAect concept #e are testing in this stud% emphasi<es the creation of a
miEed-use facilit% containing three !inds of spaces& affordable rental live8#or! housing,
#ith a focus on %ounger artists graduating from the four local colleges and universitiesC
#or!ing studio spaces for more established artistsC and space for creative businesses. A
miEed-use arts facilit% #ould generate a critical mass of artists and creative activit% that
#ould dra# visitors and arts patrons. (t #ould create visibilit% difficult to achieve #hen
artists and organi<ations are spread out geographicall%. Co-locating also offers greater
opportunit% for artists and creative business o#ners to underta!e collective mar!eting and
collaborative proAects and events.
ARTS MARKET
An in-depth Arts /ar!et Stud% is a reuired earl% step in the predevelopment phase of an
Artspace live8#or! or miEed-use proAect, and is a step #e highl% recommend regardless
of the communit%s choice of developer or proAect model. The Arts /ar!et Stud%
includes an artist space needs surve% +for live8#or! proAect concepts2 and sometimes also
includes a surve% of creative businesses and arts8cultural nonprofits in the area +for
miEed-use proAects that anticipate significant space for non-residential commercial or
nonprofit uses2. (n both instances, Artspace starts #ith a proprietar% surve% template that
#e developed =) %ears ago. 6e then modif% it #ith communit% input to reflect uniue
characteristics of the proposed proAect and local arts scene, and host it online for up to
eight #ee!s. To date, #e have used this surve% instrument in more than )* communities
and received responses from more than 9*,*** individual artists.
The primar% goal of the surve% is to determine the si<e and nature of the mar!et for a
live8#or! or miEed-use arts proAect in the communit%. 6e also use it to demonstrate a
need for affordable rental housing sufficient to satisf% the various public and private
entities that ma!e financial investments in our proAects.
The Artist Surve% gathers a #ealth of data about the areas creatives, including their age,
gender, ethnicit%, household si<e, and other demographic informationC the arts activities
the% practice and the arts facilit% features of most interest to themC their current income
range and the percentage of it generated b% artC their current studio or #or! space
arrangementC and ho# much the% are #illing to pa% for combined housing and studio
space.
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The Artist Surve% tells us #ith reasonable accurac% ho# man% live8#or! units the local
arts communit% can fill. (t can also tells us such things as #hich neighborhoods are of
greatest interest and #hat t%pes of shared spaces and amenities to include in the proAect.
6e generall% determine the residential unit count of a proposed proAect b% ta!ing the
number of artists #ho eEpress interest in relocating to the proAect if it is built - and
dividing that number b% three. For eEample, if =1* artists meet both criteria, #e plan for a
?*-unit proAect. This conservative "triple redundanc%$ polic% ensures that our proAects
lease up uic!l% and sta% full% occupied over time. .ecause smaller proAects are more
eEpensive in terms of their per unit costs, and more difficult to fund using public
subsidies, a 9*-unit proAect is the smallest that Artspace #ill t%picall% consider if #e are
to be the developer.
(f a miEed-use proAect is under consideration, and the organi<ation8business surve% is
conducted, the primar% obAectives of that surve% include identif%ing the specific space
needs of the respondents as #ell as their amenit% and shared space preferencesC
understanding their capacit% or readiness to ta!e on ne# space and #hat rents the% can
affordC and developing a comprehensive matriE of interested entities that can serve as a
starting place for space design planning and lease discussions.
.ased on observations during the focus group sessions and public meeting, #e believe
that a deeper loo! at the mar!et need and interest in Sarasota is both #arranted and
necessar%. The feedbac! #e received from artists indicated that there are man% more
artists #ho #ere not represented in the meetings and #ho either currentl% live in Sarasota
or #ould be interested in living there if this t%pe of opportunit% eEisted. (t #as also noted
that Sarasota is losing artists to the Tampa8St. Petersburg metro area and that providing
space and programs to support artists in Sarasota #ould encourage more artists to sta%.
This anecdotal information should be substantiated through a formal data gathering
process.
5uring our conversations and site visits, #e also discovered uniue needs and
preferences of the Sarasota creative communit% that can help refine the proAect concept.
For instance, #e visited home studios of artists in the communit%. The feedbac! #e
received reflected their status as mid-career artists. As homeo#ners and long-time
residents of Sarasota, the% see a need not onl% for studio space but also for places to
eEhibit, teach, and gather.
.oth the artist focus group and the public meeting #ere #ell attended. (n terms of
disciplines, the 9*-person focus group #as t%picall% diverse #ith a miE of visual,
performance, and miEed-media artists. There #ere also industrial artists, traditional
8
artists, fiber artists, dancers, actors, and other theater artists. Some uniue art forms #ere
represented as #ell b% a childrens boo! author and illustrator, a stor% teller, and a leather
mas!-ma!er.
6e as!ed the focus group artists to tell us about their creative pursuits, provide
information about #here the% do their #or!, and to complete the follo#ing sentence& "(
#ish Sarasota had NNNNNN in the arts.$ Among the responses&
A blac! boE theater space for dance and eEperimental #or!, both rehearsing and
performing
>elp #ith mar!eting and promoting the arts
>elp retaining %ounger artists #ho attend one of the four local
colleges8universities but #ho dont see future options for sta%ing in Sarasota
Civic leadership creating a nurturing environment for Sarasotas creatives
Advanced a#areness of the industrial arts
Affordable housing and studio space
An open mar!et for local artists to sell their #or!
Art in places #here people are congregating, not Aust in art institutions
Coffee shop8#or! space
/ost of the focus group participants told us the% have #or!ing studio spaces either in
their homes or in commercial buildings. Some have live8#or! spaces #hich the% o#n or
lease from non-artists. /ost of the focus group participants #ere over ?*, #hich is
t%picalC #e encountered a #ider age range of creative people at the public meeting, #hich
dre# more than =** participants - a ver% good sign for interest and support for artists
space.
Participants described cit% borders in the Sarasota area as porous and indicated that artists
#ill go #here the% are supported. (n other #ords, other artists could be recruited to
Sarasota, and emerging artists could be convinced to sta% in the area, if opportunities
eEisted for them to live and #or! there. 6e #ould #ant to test that assertion through data
collection methods li!e those listed above.
6e came a#a% from our meetings #ith a sense of the great compleEit% of the Sarasota
arts communit%, its opportunities, and its challenges. 6hile Sarasota eEcels at promoting
its creative sector and is endo#ed #ith dedicated and entrepreneurial individuals and an
abundance of cultural assets, it struggles to be perceived as a hip arts communit% that can
attract and retain creative people of all ages. An arts facilit% that provides live8#or! and
non-residential spaces #ould add greatl% to local efforts and should be eEplored further.
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6e also feel that to full% reali<e the creative economic potential, multiple avenues should
be pursued in a strategic and communit%-supported #a%. To put it another #a%, a single
proAect is onl% one tool.
SITE ANALYSIS
5uring a Preliminar% Feasibilit% Disit, Artspaces primar% goal is not to select a site but
to identif% candidates, neighborhoods, buildings, or land for further stud% should the
proAect move for#ard. (n Sarasota #e spent
several hours #ith civic, communit%, arts, and
business leaders visiting sites along the
>igh#a% ?= corridor. (t #as clear that for the
Cit% and the core group ali!e, locating a
proAect along >igh#a% ?=, #here the Cit% has
alread% made significant investments, is a
priorit%. .efore coming to Sarasota, #e
provided our hosts #ith criteria to help them
narro# do#n the site options before our tour.
,evertheless, #e visited a large number of
potential sites - eleven - and in this report,
therefore, #e #ill spea! generall% about them
rather than attempt to ran! them individuall%.
All the sites #ere located in or close to the
,orth Trail 3verla% 5istrict, a corridor that
follo#s the path of >igh#a% ?= from
do#nto#n Sarasota to the northern end of the
cit%. The 3verla% 5istrict essentiall%
corresponds to the ,orth Trail Stud% Area sho#n on the map at left. (t #as created to
encourage pedestrian uses, environmentall% friendl% development, and preservation of
the historic motor lodges that line both sides of the high#a%. A miEed-use proAect could
easil% become a catal%st for additional residential gro#th along the corridor. 6hile most
of the core group #ere focused on the ,orth Trail, there seemed to be openness to other
urban sites, should the% be identified along the #a%.
(t is important to reiterate, in this conteEt, that #hile site selection is a critical component
of an Artspace +or an% other2 maAor initiative, it should not drive the proAect. The !e% here
10
is to gain a deeper understanding of the
elements that ma!e a site feasible for an%
given proAect concept, set of communit%
goals, and economic resources.
(n general, publicl% held sites offer the
greatest opportunit% for success. A proAect
in the model of an Artspace live8#or!
facilit% relies on competitive, public funds
that can ta!e a %ear or more to assemble.
Purchasing a site prior to funding is not
reocmmended, meaning that site control
options are necessar%. Propert% o#ners
need to be #illing to hold sites in limbo
for one or more %ears, #hich is not
appealing to all. Additionall%, proAect
feasbilit% relies on a lo# purchase price.
The greater the cost of acuisition, the
more susbid% #ill be necessar%, t%picall%
from private philanthropic sources.
Propert% o#ners #ho are loo!ing for
highest and best use for their land - and
the greatest return on their investment - are not optimal partners in these proAects.
>o#ever, if a propert% o#ner is supportive of the oveall concept and #illing to be
creative in the transaction +as a seller and8or investor2, then a privatel% held site is an
option.
Given these caveats, the properties #e loo!ed at most closel% - three motor lodges and
t#o parcels of vacant land - are all privatel% o#ned. The% range in si<e from Aust under
one acre to more than t#o and in assessed value from L9**,*** to Aust under L1 million.
The !no#n "as!ing$ prices range from L= million to L1.? million. The top five properties
are o#ned b% singular o#nership entities, #hich elevates compleE propert% assembl% for
a prospective bu%er. The three motor lodges are all large enough to accommodate
bet#een ?* and 0* units of live8#or! artist housing.
6e refererenced the 3asis >otel in PhoeniE man% times in terms of ho# an architect
might creativel% approach an adaptive reuse of the t#o-stor% motor lodges. Fach propert%
has the advantage of outdoor space that could be used to accommodate a variet% of art
One o$ t&e (otor lodge sites along N. Ta(ia(i
Trail in Sarasota
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forms - from "dirt%$ forms such as potter% and sculpture to "fire art$ such as metal #or!
and glass slumping.
6hile the ,orth Trail is currentl% a miE of motels and uasi-industrial uses, it is
boo!ended b% several maAor cultural amenities, including the 'ingling Art /useum and
the 'ingling College of Art 4 5esign. Filling in the spaces bet#een these t#o assets, a
distance of =.G miles, ma!es sense for the communit% and is an important part of the
,orth Trail redevelopment plans. Beading #ith arts and culture ma!e even more sense
given Sarasotas strong arts and culture "brand.$
The top sites, as identified b% core group, are the follo#ing&
?;?? ,orth Tamiami Trail - vacant land
?@** ,orth Tamiami Trail - 5a%s (nn
?;0) ,orth Tamiami Trail - Golden >ost /otel
)9?@ ,orth Tamiami Trail - Onights (nn
)9)* ,orth Tamiami Trail - vacant land
3nce there is a stronger sense of the mar!et for a live8#or! proAect in Sarasota, the site
selection process can begin in earnest. 6eighing factors touched on above +mar!et
preferenceC alignment #ith Cit%, Count% and communit% goalsC ease and cost of
acuisitionC parcel si<eC and funding options2, the development team #ould narro#
options to a small number of "top priorit%$ sites. 5ue diligence in this phase #ould
include discussions #ith propert% o#ners, revie# of available site information
+environmental conditions, <oning, soil reports, and so on2 and #ould progress to third-
part% evaluations as needed and ultimatel% site control negotiation for the priorit% site.
FINANCIAL ANALYSIS
An Artspace live8#or! proAect represents a significant investment of civic resources. A
t%pical proAect of )* to 0* units of affordable housing for artists plus communit% and
commercial space costs L=) to L1* million. Predevelopment eEpenses - the "soft$ costs,
such as architects fees, that must be met before construction can begin - are seldom less
than L0)*,*** regardless of the si<e of the proAect. Although a number of federal
programs, chief among them Bo# (ncome >ousing TaE Credits +B(>TCs2, can be used to
generate revenue for construction, #e loo! to the communit% for private and public
predevelopment +i.e., planning2 funds. These t%picall% include some combination of
12
affordable housing allocations such as Communit% 5evelopment .loc! Grants, >3/F
funds, TaE (ncrement Financing, or the euivalent.
6hen considering financial feasibilit% and return on investment, it is important to note
the multiple points of impact of a potential proAect site. The return on investment of an
Artspace proAect t%picall% includes not onl% affordable housing but also blight
remediation, adaptive reuse of historic buildings +or urban infill2, and infrastructure
investment in the cultural econom%. Artspace uses all of these arguments, and others, to
ma!e the case for funding at ever% levelC and #hile #e are s!illed at using B(>TCs to
provide much of the funding, #e rel% heavil% on philanthrop% for a variet% of reasons.
Federal, state, and local public funding is an ever-shrin!ing pot of mone%, and the
competition for these funds can be fierce. (n man% states, indeed, the more valuable @:
taE credits are almost be%ond reach. Bess competitive +because the% are less valuable2 ?:
taE credits can be substituted, but the% generate less revenue and therefore reuire greater
contributions from other sources - including gifts from foundations, corporations, and, in
some cases, individuals.
3ne final consideration relating to financing and the gap is that the per-unit cost of an
Artspace live8#or! proAect tends to be higher than the per-unit cost of a traditional
B(>TC proAect. This factor - #hich can put us at a competitive disadvantage in B(>TC
scoring - is due to several differences bet#een our proAects and traditional B(>TC
proAects, including&
larger units that include space +t%picall% =** to =)* suare feet2 for resident artists
to use as studiosC
#ider hall#a%s that can be used as galleries #ithout impeding traffic flo#C
large ground-floor communit% rooms that can be used as galleries, performance
areas, and meeting spacesC and
large volumes of space #ithin units due to their higher ceilings.
.ecause are proAects are larger in these and other #a%s, all Artspace proAects have a
"philanthropic gap$ representing the difference bet#een the total proAect budget and the
sum of all funding sources. This gap t%picall% amounts to =*: to =): of the total cost -
but it is li!el% to be higher if ?: taE credits are used.
3ur Finance Focus Group session #as attended b% members from the Communit%
Foundation of Sarasota Count%, the Selb% Foundation, =st America and ..4T .an!s, a
local Sarasota developer, and the Sarasota >ousing Authorit%. 6e at Artspace al#a%s
13
SOURCE AMOUNT PCT.
Public Sources
Federal lo# income housing taE credits L ;,)@1,*;* ?= :
State lo# income housing taE credits L 1,0@;,?*? =0 :
Federal historic taE credits L =,;0G,00) =* :
>3/F funds +L@**,*** from state, L?**,*** from cit%2 L =,9**,*** G :
Communit% 5evelopment .loc! Grant +cit%2 L 9**,*** 1 :
Federal allocation L 1)*,*** 1 :
Private Sources
Private sector +philanthropic gifts2 L =,?**,*** @ :
First mortgage L =,1**,*** 0 :
5eferred developer s fee L ;0*,@?? ? :
TOTAL $ 16,188,18 1!! "
appreciate having local affordable housing providers in our sessions, and #e often #or!
#ith ualified communit% development organi<ations and8or local developers to ma!e
proAects #or!. 6e #ere encouraged b% the participation of both cit% and private entities
in the discussions about "#here the funding might come from.$ (t #as clear to us that a
private8public partnership #ould be ver% possible in Sarasota.
3f particular interest to a potential Artspace development in Sarasota #as a uic!
overvie# of the local communit% foundations. 6e learned that t#o of the three largest
communit% foundations in Florida are based in Sarasota Count%. These foundations
should, and li!el% #ill, pla% a large role in shaping the discussion of #hat happens along
the ,orth Trail. 6e also learned that one of these foundations is eEperienced in Program
'elated (nvestments +P'(s2, #hereb% foundation mone% is loaned to nonprofits at belo#-
mar!et rates for mission-related proAects. P'( terms are more desirable than those of
conventional loans not onl% because of their lo# interest rates but because pa%ment
schedules can be stretched be%ond traditional lending scenarios. (n some cases, the loans
can be forgiven after mutuall% agreed-upon goals and outcomes are met. Artspace has
used P'(s on several proAects and is ver% familiar #ith them.
Assuming that a miEed-use proAect moves for#ard, Artspace #ould approach potential
commercial tenants much as #e approach residential tenants. 3ur goal #ould be to see!
relationships #ith creative businesses in need of space and to pla% both a business and a
curatorial role #ith these prospective tenants. The amount of commercial space #ill
depend, of course, on the building, the si<e of the parcel and most importantl%, the
neighborhood.
The chart belo# sho#s some t%pical funding sources for an Artspace miEed-use proAect.
The eEample, the ;*-unit Artspace .uffalo Bofts in .uffalo, ,e# Kor!, included both
historic rehabilitation and ne# construction. Bi!e Sarasotas priorit% concept, the proAect
#as created as a catal%st for continued gro#th along an underutili<ed main corridor and
helped to bridge commercial activit% #ith residential. The State of ,e# Kor! offers both
a federal and a state Bo# (ncome >ousing TaE Credit, #hich is unusual. ProAect costs and
sources can var% significantl% from communit% to communit% and depend on the final
proAect concept, but this eEample provides insight into the multiple la%ers of private and
public funding that must come together for a proAect to brea! ground.
14
.ecause the B(>TC program pla%s such a pivotal role in an% Artspace live8#or! proAect,
#e #ant to provide some additional information about its relevanc% to Sarasota. As noted
earlier, B(>TC-funded proAects are most successful in areas #here mar!et rate residential
rents are high. (n more affordable communities, the mar!et rate rents ma% be closer to
>75-subsidi<ed rents, or local artists ma% find o#ning homes a preferable and
achievable alternative. This is #here a formal mar!et surve% process can be helpful. 6e
can learn #hat artists are currentl% pa%ing for rent and #hat the% #ould be #illing to pa%
in the future, and compare that to >75 rents. Fven in communities #here there is little or
no difference bet#een affordable and mar!et-rate rents, an important point to consider is
that an artist live8#or! proAect provides amenities not found in most other apartment
compleEes or even single-famil% homes, #hich can ma!e the proAect more attractive than
other options in the communit% - including abundant natural light, high ceilings, large
and open floor plans, camaraderie among residents, shared net#or!s, and the assurance
of long-term affordabilit%.
For reference, follo#ing are the current rental rates and household income limits as set b%
>75 for a proAect in Sarasota Count% in 1*=?. For purposes of this eEercise #e are
loo!ing at the highest income limits and corresponding rents as #ell as the lo#est that #e
t%picall% see in an Artspace model proAect.
#ouse$ol% si&e A''ual i'co(e li(it A''ual i'co(e li(it
)!" AM*+
15
)6!" AM*+
! 456,!57
4!8,5#7
5 459,:67
4!:,!:7
8 487,"#7
4!9,767
6 486,8;7
4!;,"87
Nu(ber o,
be%roo(s
Mo't$l- re't
)6!" AM*+
Mo't$l- re't
)!" AM*+
! 4#6:
48::
5 4996
465#
8 4;"6
46"5
(n conclusion, #e feel that there are both great funding opportunities and challenges in
Sarasota. The purpose of this stud% and this section is simpl% to identif% these and
suggest some strategies for moving for#ard. 6e feel there is enough opportunit% to
continue into a predevelopment or consulting scope of #or! #ith the caveat that it should
be a priorit% to consider the mar!et in the conteEt of the income limits and rental rates,
and to identif% potential partners and philanthropic supporters. (f the communit% chooses
to go do#n a path of eEpanding a home o#nership concept, some of the same resources
and partners #ould be relevant to that concept as #ell.
LOCAL LEADERSHIP
6e consider local leadership to be the most important element impacting a proAects
success. 6hen individuals and officials stand at the helm of a proAect, it ma!es nearl% all
of the challenges +and there are man%2 eventuall% surmountable. Challenges that can be
overcome #ith great leadership in place include securing proAect funding, site acuisition,
and achieving timel% proAect entitlements. (n particular, cit%, count%, and state elected
officials can prioriti<e proAects, ma!e decisions that can help #ith competitive public
funding applications, and assist in identif%ing sources for predevelopment and capital
funding.
Good leaders do much more than ma!e phone calls, advocate, and open doors. The% also
offer a vision around #hich the proAect and the communit% can rall%. The% offer creative
solutions and remain trul% active and invested. 6e #ere ver% impressed #ith leadership
16
in Sarasota. Flected officials, cit% staff, count% and state officials, and communit% leaders
as #ell, all demonstrated these important characteristics.
3f particular note #as representation from
7. S. 'ep. Dern .uchanans office. 'ep.
.uchanan sits on the po#erful 6a%s 4
/eans Committee and #ill have
influential s#a% on pending legislation as
it relates to taE reform in the 7nited States.
6e mention this because Bo# (ncome
>ousing TaE Credits are subAect to #hat is
!no#n as a "General Public 7se
'euirement$ designed to ensure that the%
are used in #a%s that provide public
benefits. (n 1**G, Artspace successfull%
fought to include language in the >ousing
and Fconomic 'ecover% Act that
guarantees the right of communities to appl% B(>TCs to affordable housing proAects
#hich favor specified groups of tenants, including those "#ho are involved in artistic or
literar% activities.$ Continuing this provision is essential if communities are to have the
benefit of B(>TCs in rebuilding areas such as the ,orth Trail corridor b% developing
affordable live8#or! spaces for artists.
The Arts Alliance of Sarasota Count% is an incredibl% important pla%er in the Sarasota
arts communit%. 6e #ere pleased that its FEecutive 5irector, Iim Shirle%, attended all of
our meetings and #as a member of the core group. 3ngoing artist outreach and mar!eting
efforts, program and cultural plan development should continue to dra# upon the
eEpertise and assistance of the Arts Alliance. The Arts Alliance ma!es great use of social
media to sta% in touch #ith the communit%. This tendenc% #ill serve a proAect #ell.
3ngoing outreach to artists #ill be critical to all the recommendations outlined above.
Additionall%, #or!ing #ith local press and bloggers to invite participation and !eep the
communit% informed about ne# programs and progress is important.
All in all, the ualit% and diversit% of representatives at the table #as impressive. All #ho
participated in the leadership focus group, as #ell as the core group and the public
meeting, offered ideas and support for the proAect concept and clearl% have the s!ills to
achieve collaborative goals. Cit%-led and successful partnership developments are
evidence of the eEperience and abilit% to get things done. Coming into the consulting
visit, #e #ere a#are the proAect #as alread% important to the local communit%. 3ur role
17
#as primaril% to educate, orchestrate,
and provide some suggestions for
moving this vision for#ard. The broader
aim is to bring Artspace on as a
developer #ith the capacit% to oversee
the development and long-term
ste#ardship of the proAect. (t #as a
pleasure meeting #ith so man%
communit% leaders alread% convinced of
the po#er of the arts to transform and
armed #ith the characteristics to ma!e it happen.
COMMUNITY IMPACT
3ne of Artspaces priorities is to create affordable housing that helps preserve and
maintain the communit% fabric and the artistic culture that often catal%<es change -
avoiding the gentrification-led displacement #hich often follo#s artist communities.
Permanent affordable space ensures that artists, creative businesses, and nonprofits have
a long-term opportunit% to interact #ith and influence their d%namic communit%. The
space #e create is the foundation for changeC the resident artists, businesses, and
communit% partnerships are #hat create the uniue sense of place.
As the proAect concept evolves, it #ill be important to continue to emphasi<e the proAects
"placema!ing$ capacit% b% admitting multi-disciplinar% artist residents and organi<ations
and incorporating communit%-accessible space for #or!ing, programming,
collaborations, and rentals. ,ot onl% #ould the artist residents reuire shared spaces, but
the communit% #ould benefit from having access to art displa%s, #or!shops and classes,
demonstrations, meet-ups, lectures8 dialogues, and other on-site events.
Site selection #ill be an important contributing factor to the proAects overall sustained
communit% impact. As discussed above, #e agree that the ,orth Trail is a good area of
focus because a catal%st development in this location should leverage other public and
private resources. .ut it is not the onl% location and not the onl% consideration #hen
evaluating sites. A live8#or! proAect an%#here in Sarasota #ill secure an affordable
future for the areas artists and help to retain its %oung creative residents. The ,orth Trail
is on a path to become a more pedestrian-friendl% miEed-use area. An artist live8#or!
proAect #ith some commercial space could help tip the scale.
An Artspace proAect is a local proAect. 6e #or! #ith the communit% at ever% stage to
ensure our site, design, amenities, and non-residential tenants and uses best serve the
One o$ t&e (any (otels along t&e Nort& Trail
18
neighborhood and the cit% as a #hole. 6e hire locall% #henever possible during the
development, design, construction, and operational phases, and loo! for sustainable long-
term relationships for forging maEimum long-term impact. (f the communit%s goals for
this proAect include harnessing the transformational po#er of the arts, then it #ill find that
its o#n communit% assets and leaders #ill pla% a significant role in reali<ing this ideal
and ensuring the long-term, positive communit% impact of the proAect.
19
20
Recommendations
- Ne.t Steps
arasota has long been identified #ith the arts. Civic leaders as #ell as ordinar%
citi<ens understand that the arts help ma!e Sarasota a special place. Although #e
met some artists #ho believe that nearb% .radenton is generall% more supportive
of ne# development +#hether are-related or not2, Sarasota has clearl% established itself as
a communit% #ith a deep ongoing commitment to the arts and culture as eEemplified b%
institutions li!e the 'ingling Art /useum, the >istoric Asolo Theater, and the Sarasota
3pera.
S
Iudging b% our visit, Sarasota also has the inclination and leadership needed to build on
this foundation b% transforming the ,orth Trail into something more livel% and attractive
than an urban high#a% lined b% motor lodges, restaurants, and par!ing lots. An affordable
miEed-use arts proAect could be an important catal%st of change, serving as a focal point
for the Cit%s mar!eting efforts #hile providing needed affordable space for artists. A
single facilit% #ould not be the onl% piece of an overall strateg% designed to build
Sarasotas creative econom%, but it #ould certainl% be a high-profile one.
6hat follo#s is a set of recommendation for neEt steps that #e believe #ill help
Sarasotas civic and arts leaders move for#ard effectivel%, either #ith Artspace or #ith
one or more other developers.
1. Conduct an Arts Market Survey
The most important neEt step for Sarasota is to uantif% the demand for artist space
b% means of a formal Arts /ar!et Surve%. (t is the onl% reliable #a% #e !no# to
determine the need - and hence the mar!et - for affordable live8#or! space in a
communit%. (n general, #e recommend proceeding #ith an Arts /ar!et Surve% if,
based on our Preliminar% Feasibilit% Disit, #e are confident that the surve% #ill
indicate the eEistence of a mar!et sufficient to support a proAect of at least 9* and
preferabl% ?* or more units. (n a fe# cases, #e recommend an Artist /ar!et Surve%
to a cit% that #ishes to have a better or more complete picture of the si<e and ma!eup
of its arts communit%, even though #e believe that the surve% is unli!el% to reveal a
mar!et for an Artspace proAect. As noted above +page G2, based on observations
during the focus group sessions and public meeting, #e believe that a deeper loo! at
the mar!et need and interest in Sarasota is #arranted. (n our vie#, there is a strong
possibilit% that a mar!et of sufficient si<e eEists to Austif% a proAect in Sarasota. A full-
scale surve% is not ineEpensive, but its cost is small compared to that of building a
multi-million dollar proAect for #hich little or no mar!et eEists.
2. Revisit and update the Cultural Plan
The Cit% and the Arts and Cultural Alliance #ere #or!ing on a Cultural Plan a
decade ago but shelved it, #e #ere told, #hen the econom% #ent into recession in
1**G. 6e thin! the communit% #ould be smart to return to that plan, update it, and
include goals related to artist spaces in the ,orth Trail corridor. The plan should also
be brought into alignment #ith the Cit%s most recent comprehensive plan. .ecause
effective cultural planning involves substantial communit% input, the Cultural Plan
could ta!e a %ear or more to completeC but given current civic priorities #e see no
reason to dela% moving for#ard #ith an affordable artist space developmentC the t#o
processes can proceed simultaneousl%. (n order for Sarasota to succeed full% at
prioriti<ing investment and leveraging grassroots efforts, #e suggest developing and
adopting a ne# cultural plan. The 1**; Cultural Plan is no# nearl% a decade old. The
Cit%s decision to revisit that document is a good place to start. Although some
sections of it are probabl% outdated, it represents the best thin!ing of civic and
cultural leaders a decade ago and is probabl% relevant toda%. T#o eEamples of
eEemplar% plans that can be used to facilitate this process can be found at&
http&88###.cit%ofmadison.com8mac8documents8/adisonCulturalPlan.eg-
Findings-All.pdf
http&88imaginechattanooga1*1*.org8indeE.php8documents8
3. Keep the Arts Alliance in a leadership role
The Arts Alliance of Sarasota Count% is a vitall% important pla%er in the Sarasota arts
communit%. 6e #ere pleased that FEecutive 5irector Iim Shirle% attended all of our
meetings and #as a member of the core group. 3ngoing artist outreach and mar!eting
efforts, program and cultural plan development should continue to dra# upon the
eEpertise and assistance of the Arts Alliance.
The Arts Alliance alread% ma!es good use of social media to sta% in touch #ith the
communit%. This #ill serve a proAect #ell. 3ngoing outreach to artists #ill be vital to
the process. Additionall%, #or!ing #ith local press and bloggers to invite
participation and !eep the communit% informed about ne# programs and progress is
22
important. The Arts Alliance should begin to build lists of artists and creative
businesses that are interested in affordable space opportunities in Sarasota.
4. Continue conversations with property owners alon the !orth "rail.
3ne of the challenges of redeveloping the ,orth Trail, as noted earlier, is that most of
the potential sites are privatel% o#ned and #ill be eEpensive to acuire. (dentif%ing an
o#ner, such as a Cit% or Count% agenc%, could help eEpedite a ph%sical proAect and
reduce the potential acuisition costs of a site or building. Consider, too, if there are
building8land o#ners #ho could utili<e a significant taE deduction for the donation of
land to a nonprofit.
There are man% other opportunities for the communit% and local leaders to !eep the ball
rolling on an artist live8#or! proAect #ithout losing momentum during a predevelopment
scope of #or! development and subseuent funding phase. 6e do not feel a sense of
urgenc% to move uic!l% on securing a site or delving deepl% into development #or!. 6e
do feel that a thoughtful communit%-building, concept-refining and mar!et stud% process
as outlined in the recommendations above #ill be the best course for a successful proAect
in Sarasota in the long run.
6e at Artspace #elcome an opportunit% to continue our #or! in Sarasota and #ith the
tremendousl% dedicated leaders and communit% members #e met during our t#o da%s.
6e hope to be a part of an% strateg% or affordable artist live8#or! space development in
Sarasotas future.
23
APPF,5(P =
TH! PATH /F AN ARTSPAC! PR/0!CT
'ome #asnt built in a da%, and neither is an Artspace proAect. (n fact, a t%pical Artspace
live8#or! proAect ta!es from three to five %ears to complete. ,o t#o proAects, of course,
are precisel% ali!e. .ut the% all travel a similar path through the development process.
>ere is a brief loo! at a t%pical Artspace live8#or! proAect as it proceeds from first
inuiries through feasibilit% studies, predevelopment, and development to completion and
occupanc%. Q,ote that our recommendations for Avondale do diverge slightl% from this
standard eEample. 6e recommend that Step (( be divided into t#o categories as noted
above in the ,eEt Steps section of this report. Step (( +a2 #ould involve additional
communit% input and concept refinement #hile Step (( +b2 is a modified approach to a
traditional arts mar!et surve% and site control8proAect implementation.
ST!P (1 PR!2,,NAR3 F!AS,4,2,T3
#verview $n%or&ation 'atherin
Pri&ary
Activities
/eet #ith artists, civic leaders, and other sta!eholders
Conduct public meeting to introduce Artspace and solicit feedbac!
Tour candidate buildings8sites
(elivera)les 6ritten report #ith recommendations for neEt steps
"i&e %ra&e 1 da%s
Cost L=),***
ST!P "1 ARTS AR5!T S6R7!3
#verview Assessin the !eed
Pri&ary
Activities
Assemble comprehensive list of artists +and arts organi<ations, if
applicable2 in area
Conduct public meeting to launch surve%
Anal%<e and report on surve% findings
(elivera)les 6ritten report #ith recommendations for neEt steps
"i&e %ra&e ?-; months
Cost L9*,*** +artists onl%2 or L?1,)** +artists and arts organi<ations2
ST!P *1 PR!8!7!2/P!NT ,
#verview (eter&inin Pro*ect +ocation and Si,e
Pri&ary
Activities
6or! #ith Cit% and other sta!eholders to establish +a2 preliminar%
proAect scope and +b2 space development program for evaluating
building and site capacit%
Anal%<e candidate building8sites #ith respect to cost, availabilit%, and
other factors impacting their abilit% to address development program
goals
'evie# eEisting information about potential site+s2 to identif% !e% legal,
environmental, ph%sical, and financial issues affecting their suitabilit%
R ,egotiate #ith propert% o#ners #ith goal of obtaining site control
agreement
R 6or! to#ard a purchase agreement or other means of site control
(elivera)les
Confirmation of development space program and goals
Assessment of site suitabilit% and identification of an% contingent
conditions to be resolved through continued due diligence
Site control agreement, including ac!no#ledgement that site control
ma% not be finali<ed before completion of Step 9 and that Step ? should
not commence until site control is obtained
Summar% of proAect status
"i&e %ra&e 9-; months
Cost L=)*,***
25
ST!P '1 PR!8!7!2/P!NT ,,
#verview Pro*ect (esin and -inancial Modelin
Pri&ary
Activities
6ith Cit% participation, establish process for selecting architectural team
Confirm development goals and space program #ith architectural team
Fngage architect to create conceptual plans and schematic designs +can
also happen in Step 92
Fngage cost consultant or contractor to provide pre-construction services
to the proAect
'esolve an% contingent conditions relating to site control through
continued due diligence
Create capital +sources and uses of funds2 and operating +annual income
and eEpense2 budgets
3btain proposals and8or letters of interest from lender and euit%
investor financing partners
Submit lo# income housing taE credit application +if applicable2
Submit other financing applications as applicable
(elivera)les
Conceptual plans
Schematic designs
Financial pro-forma detailing capital and operating budget
Preliminar% proposals and letters of interest for proAect mortgage and
euit% financing
TaE credit and8or other proAect financing applications
Summar% of proAect status
"i&e %ra&e =*-=9 months
Cost L9)*,***
26
ST!P #1 PR!8!7!2/P!NT ,,,
#verview
-ro& "a. Credits /or Pri&ary Source o% 01uity2 to -inancial
Closin
Pri&ary
Activities
Secure final gap funding commitments
'aise funds for euit%, including private sector philanthropic dollars
Complete construction documents and submit permit applications
,egotiate construction and permanent loan commitments
,egotiate limited partner euit% investment commitments
Advance proAect to construction closing
(elivera)les Successful closing and commencement of construction
"i&e %ra&e ?-; months
Cost L1)*,***
ST!P )1 C/NSTR6CT,/N
#verview Construction and +ease3up
Pri&ary
Activities
3versee proAect construction
Fngage local management compan%
(dentif% commercial tenants and sign lease agreements
Conduct residential tenant selection process
(elivera)les Completed proAect
"i&e %ra&e ;-=* months
Cost 5epends on proAect +not part of predevelopment contract2
27
APPEN/I< 5
=>I?/IN1 =ETTER CO00>NITIES THRO>1H THE ARTS
6hat ma!es a cit% greatJ Across America, cities large and small are discovering that one
essential ualit% of ever% great cit% is a great arts communit%. (n an era #hen people are
freer than ever to choose #here the% live, vital arts communities help cities attract and
retain residents and businesses. Thriving arts districts are magnets for tourists,
restaurants, theaters, and creative industries. (n a great cit%, the arts are not an eEtra,
something to be considered onl% after "more important$ items on the civic agenda are
funded. (n a great cit%, the arts are as fundamental as streets, par!s, and public
transportation.
At Artspace, helping cities integrate the arts into their civic agendas is part of our core
business. 3ver the last t#o decades #e have completed 9) maAor arts proAects that
contain more than =,=** affordable residences - each #ith space for a built-in studio - for
artists and their families and provide more than a million suare feet #here artists and
arts organi<ations #or!, teach, eEhibit, rehearsal, perform, and conduct business.
6e have seen firsthand the po#er of the arts to transform urban landscapes. T#o of our
earliest proAects helped launch the celebrated renaissance of Saint Pauls Bo#erto#n
neighborhood during the =@@*s. (n 'eno, a livel% arts district has sprung up around an
Artspace proAect that opened a decade ago. An Artspace proAect in Seattle turned an
abandoned bloc! in Pioneer Suare into the center of that cit%s independent galler%
scene.
What is Artsa!"#
Fstablished in =@0@ to serve as an advocate for artists space needs, Artspace effectivel%
fulfilled that mission for nearl% a decade. .% the late =@G*s, ho#ever, it #as clear that the
problem reuired a more proactive approach, and Artspace made the leap from advocate
to developer. Toda% Artspace is #idel% recogni<ed as Americas leader in creative
placema!ing.
28
As a mission-driven nonprofit, Artspace is committed both to the artists #ho live and
#or! in our proAects and to the communities of #hich the% are a part. 6e #or! #ith civic
leaders to ensure that our proAects successfull% deal #ith the issues the% #ere designed to
address.
O$r ro%ra&s
Artspace programs fall into three categories& propert% development, asset management,
and national consulting.
Property development
5evelopment proAects, #hich t%picall% involve the adaptive reuse of older buildings
but can also involve ne# construction, are the most visible of Artspaces activities.
Artspace t%picall% completes t#o to four proAects each %ear. /ost proAects ta!e three
to five %ears from inception to operation.
Asset management
Artspace o#ns or co-o#ns all the buildings it developsC our portfolio no# contains
more than L0)* million #orth of real propert%. All our proAects are financiall% self-
sustainingC #e have never returned to a communit% to as! for operating support for a
proAect once it has been placed into operation. 'evenues in eEcess of eEpenses are set
aside for preventive maintenance, commons area improvements, and building
upgrades.
National consulting
Artspace acts as a consultant to communities, organi<ations, and individuals see!ing
information and advice about developing and operating affordable housing and #or!
space for artists, performing arts centers, and cultural districts. 3ur eEpertise as an
arts developer gives us not onl% a uniue perspective but also a uniue set of s!ills,
and sharing this !no#ledge #e have amassed over the %ears is central to our mission.
O$r histor'
Artspaces first live8#or! proAect opened its doors in =@@*. (n the mid-=@@*s, Artspace
developed its first proAect outside /innesota, the 90-unit Spinning Plate Artist Bofts in
Pittsburgh. (nvitations to #or! in other states soon follo#ed. Artspace is no# the nations
leading developer of live8#or! housing for artists #ith 9) proAects in operation from
coast to coast. (n all, these proAects contain more than =,=** residential units and more
than 9)* creative businesses and nonprofit arts-focused organi<ations.
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Artspace is no# a nationall% prominent organi<ation #ith offices in /inneapolis, Seattle,
,e# Kor!, ,e# 3rleans, Bos Angeles, and 6ashington, 5.C. 6e have proAects in
operation, under construction, or in development in 1* states. 3ur national consulting
program has helped communities in virtuall% ever% state address their arts-related space
issues. The nature of our #or! is evolving, too, to include multiple-facilit% proAects, long-
range planning, arts districts, and arts initiatives designed to serve culturall% specific
groups such as native >a#aiians, the communities of color in ,e# 3rleans, and the
,ative Americans of the ,orthern Plains.
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