January 27, 1999
To:Budget Committee
From:City Clerk
Subject:North York Performing Arts Centre (Ford Centre) 1999 - 2000 Concert Series
The Strategic Policies and Priorities Committee on January 26, 1999:
(1)referred the issue of the North York Performing Arts Centre (Ford Centre) 1999 -
2000 Concert Series, to the Budget Committee for report thereon directly to Council for
its meeting scheduled to be held on February 2, 1999, on the full costing of all options;
and
(2)requested the Chief Financial Officer and Treasurer to submit a report to the
Strategic Policies and Priorities Committee:
(a)on the status and the prospect of the RFP review;
(b)on the operational models that are envisioned;
(c)respecting a business plan on the transition period and beyond; and
(d)respecting quarterly financial reports being submitted to the Strategic Policies and
Priorities Committee.
Background:
The Strategic Policies and Priorities Committee on January 26, 1999, had before it the
following:
(1)a communication (January 25, 1999) from the City Clerk, advising that the North York
Performing Arts Centre Corporation (NYPACC) Emergency Committee, on January 23,
1999, recommended to the Strategic Policies and Priorities Committee and Council that the
operation of the Ford Centre be continued for 1999 and the first six months of 2000, including
a 65 concert series at the George Weston Recital Hall and community and commercial rentals
in the Apotex Theatre and Studio Theatre, at a cost not to exceed $1.1 million in 1999 and
$1.9 in 2000; and
(2)communications from the following persons in support of the continuation of the Ford
Centre for the Performing Arts:
(i)a petition (January 24, 1999) signed by residents of the Yonge-Sheppard area;
(ii)(January 25, 1999) from Ms. Pamela Shapiro, President, North York Chamber of
Commerce;
(iii)(January 25, 1999) from Mr. Bernard Rasch, Rasch Architect Ltd.;
(iv)(January 25, 1999) from Nelly and Tony Mazzone, Mazzone Antipasti Ristorante;
(v)(January 25, 1999) from Ms. Lillian Ing; and
(vi)a petition (January 25, 1999) from residents in the York Region area.
The following persons appeared before the Strategic Policies and Priorities Committee in
connection with the foregoing matter:
-Mr. Jim McGuffin, Chair, North York Performing Arts Centre Corporation;
-Mr. Tom Hill, representing Local 58, on behalf of Mr. Bill Nalepka, Acting Business Agent,
IATSE, Local 58;
-Mr. Peter Webb, General Manager, Classical 96 and 103 FM;
-Mr. Eric Friesen, Host CBC Radio 2 In Performance;
-Mr. Kerry Stratton, Conductor and Music Director, North York Symphony;
-Ms. Gail Vanstone, Chair of the Art Gallery Committee;
-Ms. Liz Bradley, General Manager and Chief Executive Officer, The Hummingbird Centre
for the Performing Arts;
-Mr. Glenn Garwood, Executive Manager, North York Performing Arts Centre Corporation;
and
-Mr. Ken Colley, Finance Division.
The following Members of Council appeared before the Strategic Policies and Priorities
Committee in connection with the foregoing matter:
Councillor Olivia Chow, Downtown;
Councillor Blake F. Kinahan, Lakeshore-Queensway; and
Councillor David Shiner, Seneca Heights.
City Clerk
P. A. Morris/in
Item No. 22
Sent to:Chief Financial Officer and Treasurer
c:All Interested Parties
January 25, 1999
To:Strategic Policies and Priorities Committee
From:City Clerk
Subject:North York Performing Arts Centre (Ford Centre) -1999 - 2000 Concert Series
Recommendation:
The North York Performing Arts Centre Corporation (NYPACC) Emergency
Committee on January 23, 1999 recommended to the Strategic Policies and Priorities
Committee and Council that the operation of the Ford Centre be continued for 1999 and
the first six months of 2000, including a 65 concert series at the George Weston Recital
Hall and community and commercial rentals in the Apotex Theatre and Studio Theatre,
at a cost not to exceed $1.1 million in 1999 and $1.9 million in 2000.
Background:
The North York Performing Arts Centre Corporation (NYPACC) Emergency Committee
heard verbal presentations from the North York Performing Arts Centre Corporation
Management Team relating to the 1999 - 2000 Concert Series. The information discussed at
the meeting on January23,1999 has been incorporated into the attached joint report (January
25, 1999) from the Executive Manager and the Treasurer, North York Performing Arts Centre
Corporation.
(Joint report (January 25, 1999) from the Chief Financial
Officer and Treasurer and the Executive Manager,
North York Performing Arts Centre Corporation, entitled
"Sustaining Operations at the Ford Centre: 1999 - 2000 season".)
Purpose:
To seek approval for funding to sustain operations at the Ford Centre for the Performing Arts
while the Centre continues through a restructuring phase. The urgent need for this approval is
dictated by the necessity of solidifying contracts with artists for the 1999 -2000 Concert
Season in the George Weston Recital Hall. Failure to commit to a 1999 - 2000 Concert
Season immediately would result in Canadian and international artists withdrawing their
planned Toronto dates in favour of other cities and would devastate the surrounding business
community. This outcome would abort the 1999 - 2000 season, effectively erasing the
subscriber, patron and sponsor base achieved for the Centre to date. The complete loss of
ongoing activity at the Ford Centre will undermine the efforts of the NYPACC Board to
attract private sector partners essential to the ongoing viability of the Centre. This critical
timing has budget implications for the City and other arts organizations.
Funding Sources, Financial Implications, Impact Statement:
The financial resources and reserves of the Board are being deployed to stabilize the Centre
while it seeks private sector partnerships and a new private sector manager to replace Livent.
The Board anticipated a funding shortfall of $1.66 million in the 1999 operating year to
sustain operations. This included a capital maintenance reserve fund contribution to be funded
at traditionally prescribed levels. The Board, working with the Emergency Committee was
able to reduce expenses and rationalize a different approach to the reserve fund contribution
which reduced the current funding request to $1.1 million. This amount is consistent with the
previous report to Council on Dec.16th/17th 1998 which projected an operating deficit of
$1.12 million for a 1998 - 1999 series only but now includes a continued 1999 - 2000 concert
season.
Recommendations:
It is recommended that:
- the mounting of a 1999 - 2000 Concert Season in the George Weston Recital Hall and the
continued operation and accessibility of the Centre for community and commercial renters
be approved;
- funding for operating the Centre at a cost not to exceed $1.1 million in 1999 be approved
and, because the operating cycle for the Concert season and community rentals straddles
the 1999 and 2000 fiscal years, the 2000 budget for $1.9 million be approved in the event
that the Board is unable to attract and secure private sector management or any significant
commercial use of the Centre; and
- the detailed budget as reviewed and approved by the NYPACC Board and amended by the
Emergency Committee be forwarded to the City's Budget Committee.
Council Reference /Background/ History
In the wake of the Livent default and termination of the management agreement at the Ford
Centre, the North York Performing Arts Centre Corporation (NYPACC) has worked
diligently to stabilize operations. The NYPACC Board, with the assistance of the Emergency
Committee, has assumed interim control of the Centre with the aim not only of protecting the
City's interest in this capital asset but also safeguarding the cultural legacy of the Centre.
These accomplishments include a 10,000 member subscriber base to the George Weston
Recital Hall, and annual attendance of up to 850,000 visitors. Restoring partial programming
minimized the negative impact on many local businesses and arts organizations in 1998
-1999.
The Board and the Emergency Committee rigorously reviewed the implications of
incremental shutdown of the Centre. If all operations ceased in June of 1999, no funding
subsidy would be required to close out the 1999 fiscal year, but close to $1 million would still
be required to maintain closure for the year 2000 and every year thereafter. Appendix A
attached summarizes the expenditures and revenue for 1999 and 2000.
The Board is strongly convinced that the best opportunity to attract a private sector operator is
predicated on continuing animation of the Centre. The continuance of the wide spectrum of
cultural activities currently embraced by the Centre is vital to the financial health of countless
local and City wide organizations who view the Ford Centre as their performance home. Even
with a reduced scope of operations, there is significant contribution to the Toronto economy.
Activities at the Ford Centre have triggered several hundreds of millions of dollars into the
Toronto economy over the past 5 years.
Council, on Dec. 16th/17th endorsed the Board's plan to rescue a number of Livent cancelled
concerts for incorporation into a "Reclaimed Concert Season" made possible by the unique
partnership of performers, stage hands union, media and the City. This initiative enabled the
Centre to keep together the operating infrastructure as well as gave it the ability to honour all
community rental obligations. Council, as part of the endorsement mentioned above,
authorized the Board spending $1.5 million from NYPACC's own resources. (By statute the
Board needs Council approval for expenditures over $500,000). Current estimates indicate
that the Relaimed Concert Series is on track and net expenditures are reduced by $100,000
since reporting to Council.
Conclusion:
Interim financial support of this important cultural institution reflects the City's commitment
to the arts and recognizes the importance of the arts in contributing to the economic health of
the City. It is also consistent with the City's desire to encourage commercial partnerships as a
way to fund the needs of the arts community.
Contact Name:
Glenn GarwoodNYPACC395-7424
Ken ColleyFinance395-6715
W. A. Liczyk
Treasurer
Glenn Garwood
Executive Manager
North York Performing Arts Centre Corporation
Appendix "A"
The North York Performing Arts Centre Corporation
Summary of Expenditures and Revenues
