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HomeMy WebLinkAboutIR 8504 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8504 June 24, 2003 ��"i■ To the Mayor and Members of the City Council a r■ta SUBJECT: Roseland Marine Theatre Update The following is in response to a City Council request for a report regarding the status of the Roseland Marine Theatre. In 2000, the City of Fort Worth utilized Economic Development Initiative (EDI) Grant funds to purchase and renovate the Roseland Marine Theater d/b/a Rose Marine Theatre ("Theater") located at 1440 North Main Street. The EDI Grant funds were available for the City's use because the City had received HUD Section 108 loan funds for the development of the Mercado de Fort Worth project. The EDI Grant funds were tied to the HUD Section 108 loan funds. On October 24, 2000, the City Council authorized a lease agreement with the Latin Arts Association of Fort Worth (LAA) for management services of the Rose Marine Theater for$1 per year for 5 years. (L- 12930) The LAA agreed to lease the Theater for art entertainment, education, civic or cultural purposes and operate a theater skills training program targeted to low-income, at-risk youth. Additional responsibilities of the LAA under the lease agreement with the City are as follows: ■ The LAA is required to establish and maintain a reserve fund for the maintenance of the facility. The LAA must deposit $5,000 per year into this fund until it reaches $25,000. (A bank statement was provided to City staff that indicated that funds in the amount of$10,482 were deposited in the name of Latin Arts Association of Fort Worth Grants Fund.) ■ The LAA is responsible for all maintenance and improvements of the Theater. (From City Staff inspections, it appears that the property is being properly maintained.) • The LAA is required to maintain insurance coverage for the building and its contents, as well as liquor liability if liquor is sold served or allowed to be served in the Theater. (At the time of this report, the City has requested that the LAA submit a revised insurance certificate stating that the City is an additional insured as required in the Lease. In addition, it has come to City Staff's attention that liquor has been served in the Theater. City staff has requested that the LAA provide liquor liability insurance as required under the Lease. Notice has been sent in writing notifying the LAA that they must address these issues within 30 days.) • The LAA is also required to meet the Federal National Objectives of activities benefiting low-and moderate-income individuals and to maintain full documentation supporting fulfillment of these objectives in its files. (Based on performance and activity information provided by the LAA, staff has determined that there has been limited activity at the Theatre from January 2003 to May 2003 to meet the National Objectives under the terms of the lease.) Since 2001, the LAA has been awarded Community Development Block Grant funding to operate its theater-training program for low-income, at risk youth at the Theater. The CDBG funds were granted to Smburse the LAA for expenses incurred to operate a program that targets low-income youth with the al of training these youth in theatre production skills. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8504 June 24, 2003 PATEN. To the Mayor and Members of the City Council a rays SUBJECT: Roseland Marine Theatre Update In December 2002, LAA experienced changes in its board membership and its program coordinator resigned. These events directly impacted the level of program activity made available to program participants including the scheduling of performances. According to information provided by the LAA, staff has determined that there has not been any CDBG eligible activity for the period of January until May 2003. Additionally, LAA has not requested or received any reimbursement of CDBG expenditures since January 2003. This lack of activity resulted in the LAA failing to meet its program goals under the CDBG contract for the fiscal year ending May 2003 in the number of training sessions (goal of 22, 18 completed); theatrical performances by the participants (goal of 4, 2 completed); workshops held (goal of 4, 0 completed). Staff has met with representatives of the Latin Arts Association including Sal Espino, Board President; Abby Gamboa, Advisor to the Board; and Yvonne Duque, Education/Outreach Coordinator. LAA stated that it believes that the recent hiring of an Education/Outreach Coordinator and Executive Director, along with the receipt of additional funding to support the Theatre Skills Program will be beneficial for future programming activities. The LAA reported that they were awarded a grant in the amount of$78,500 from other sources to assist in the operation and implementation of its programs. , The City Council currently has allocated funding for the Theatre Skills program with the LAA in the CDBG budget. In order to fund the program, the staff needs the authority to finalize a contract with the LAA. The City is within its rights not to continue funding this program because the LAA failed to meet its goals during the last fiscal year. Additionally, under the lease, the LAA will need to show that it has documentation supporting fulfillment of the HUD required National Objectives during the months of January 2003 to May 2003. We currently do not have that documentation in hand. The current lease in its current form with the LAA for the use of the Rose Marine Theatre does not include performance standards such as use days and activity goals at the theatre. Performance standards need to be in place to provide accountability for theatre activity as well as to help ensure that National Objectives are met. The staff would propose opening up negotiations with the LAA to add use days and activity goals to the lease. The City Council should continue to defer action on the CDBG contract until negotiations are completed and performance goals are in place on the lease agreement. Staff will continue to work with the LAA on these outstanding issues. Should you have any questions, please contac a Paniagua at extension 6191 or Deidra Emerson at extension 7563. Ga ack Cit Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS