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2018-171 Cultural District OverviewDate: November 16, 2018 Report No. 2018-171 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: This is a brief summary providing information about Denton’s possible participation in the Texas Commission on the Arts’ (TCA) Cultural Districts Program. EXECUTIVE SUMMARY: In early 2018, Council directed staff to look into Denton’s participation in the Texas Commission on the Arts’ (TCA) Cultural Districts Program. Between May and August, an informal group of stakeholders met several times to discuss the idea of a cultural district in Denton and some of the details necessary for formation. The 2019 cultural district application cycle begins in January with the submission of a letter of intent and ends in June with submission of the full application. While staff can complete portions of the application, a consultant will need to be engaged to assist with certain critical components. Prior to work beginning on the application, staff needs further direction from Council on the boundaries of the cultural district and the composition and structure of the cultural district committee. BACKGROUND: In late February 2018, staff presented a work session to Council regarding the TCA’s Cultural Districts Program. Council expressed interest in the program, and directed staff to begin next steps, including: • Researching cultural districts in other communities • Gauging interest of key stakeholders in participating in the cultural district planning/formation process • Determining possible boundaries of a cultural district • Determining level of funding, funding sources, and staff resources necessary to form and maintain district • Developing initial plan and timeline for application Staff researched eight existing cultural districts in DFW and other areas of the state (Exhibit 1). The formation process, funding, management, and goals of these districts vary widely. Between May and August, an informal group of stakeholders met several times to discuss the idea of a cultural district in Denton and some of the details necessary for formation. These stakeholders included artists, musicians, business owners, developers, historic property owners, and representatives from UNT, TWU, Greater Denton Arts Council, and the Convention and Visitors Bureau. Staff from Economic Development led the meetings, and Development Services staff also attended. The first meeting involved a discussion of the statewide cultural district program, possible boundaries for the district, and a brainstorming session on a cultural asset inventory within the Date: November 16, 2018 Report No. 2018-171 proposed boundaries. The second meeting covered possible district names, along with potential mission and vision statements. The third meeting concerned the structure and composition of a cultural district committee, pre-application community engagement, a SWOT analysis, and budget considerations. The cultural district application cycle requires a letter of intent due January 30, 2019. The completed application is due June 15, 2019. The application is attached as Exhibit 2. While staff can complete certain portions of the application, a consultant will need to be engaged to facilitate the necessary public meetings and focus groups, develop a detailed cultural district plan, and develop a detailed cultural district marketing plan, all of which are necessary for the application. Staff estimates the consulting costs will range from $25,000 to $30,000. The following is an approximate timeline of the steps needed to complete the application:  January 30, 2019 – deadline to submit letter of intent  Mid-February – consultant engaged  March – public meetings and focus groups  April/May/June – development of cultural district plan and marketing plan; completion of application  June 15, 2019 – deadline to submit completed application In January or February 2019, staff will seek Council direction on the boundaries of the cultural district and the composition and structure of the cultural district committee. CULTURAL DISTRICT PROGRAM BACKGROUND: The 79th Texas Legislature authorized the Texas Commission on the Arts to designate cultural districts in cities across the state. Cultural districts are special zones that harness the power of cultural resources to stimulate economic development and community revitalization. These districts can become focal points for generating businesses, attracting tourists, stimulating cultural development, and fostering civic pride. Designated cultural districts are eligible for grant funding from TCA for cultural tourism projects. Cultural districts are formed around an existing concentration of “cultural assets” clustered in a walkable area that a city wants to promote to visitors and residents. Cultural assets include performances and exhibitions, creative activity, architecture, and historical offerings. Cultural districts do not obligate property owners within the district to any type of additional regulations. Thirty communities – ranging in size from Houston to Alpine – have cultural districts. The application process through TCA is done on an annual basis, and not every application is approved. In-depth planning is required prior to the application being submitted, and support from local political and arts leaders is critical. The application requires that the community’s Date: November 16, 2018 Report No. 2018-171 capacity for ongoing funding and management of the district be clearly demonstrated. If a community’s application is approved, an annual report on the district must be submitted to TCA and reapplication is required every 10 years. Some communities designate cultural districts at the local level instead of through TCA, which negates the need for the application and annual reporting process. This could be accomplished via a Council resolution designating the district. However, a cultural district with a local designation alone is not eligible to apply for TCA grants. Two communities, Texarkana and Dallas, designated local cultural districts first and then applied to the TCA in later years. The TCA’s Cultural District Project Grant Program is designed for projects that focus on significant cultural tourism projects. Requests up to 50 percent of a project’s budget, not to exceed $250,000, will be considered; a dollar-for-dollar match is required. Eligible categories include:  High-quality arts programming that will attract a significant number of visitors from 50 miles or more outside the community  Enhancements to the cultural district to make it more accessible, attractive, cohesive- looking, and safe for visitors  Improved signage and wayfinding for the district  Promotion of the district; this may include the district’s website, branding, and marketing  Organizational support for the management and operations of the district TCA administrators have identified the following common traits among successful cultural districts that may serve as indicators of potential success in new districts:  Unique and authentic identity  Political and community support  Strategic partnerships  Inclusive cultural strategic planning  Artists are partners  Sustainable artist live/work spaces  Anchor institutions and special events  Strong amenities  Local developer/s committed to the cultural district  Marketing and promotion efforts CONCLUSION: Denton is fortunate to have a wealth of cultural assets, a cultural district would be a new way to embrace and promote those assets for economic development and cultural tourism, as well as opening up a new avenue for grant funding. The application process is complex and will require a significant investment of staff time as well as the engagement of a consultant. Date: November 16, 2018 Report No. 2018-171 ATTACHMENT(S): Exhibit 1 – Research on existing Cultural Districts Exhibit 2 – Cultural District Application STAFF CONTACT: Caroline Booth Director of Economic Development (940) 349-7751 Caroline.Booth@cityofdenton.com CITY YEAR OF FORMATION HOW LONG DID THE PROCESS TAKE? SIZE OF DISTRICT (SQUARE MILES OR BLOCKS) ORGANIZATIONAL & MANAGEMENT STRUCTURE ANNUAL BUDGET SOURCES OF FUNDING STAFFING SUCCESS METRICS PRIMARY BENEFITS TO COMMUNITY CHALLENGES LOCAL DESIGNATION ALSO? Arlington 2016 Original people who submitted the bid are no longer involved. Since the time the distinction was awarded by the State, nothing further has been done to market the cultural district designation. Encompasses the "BID" district downtown Governed by a Board of Directors Zero No fees as of now. No funding. The Downtown Arlington Management Corporation, which is a private, non-profit community development organization, provides one staff person, which is also the Executive Assistant to the President & CEO. Having obtained the Texas Cultural District designation. "To forge alliances between property owners, business interests, residents and the City of Arlington to improve and enhance the economic vitality and overall environment of Downtown Arlington." Competition between the Downtown Arlington Management Corporation and the Arlington Chamber. No Dallas 1984 "The Dallas Arts District is the largest contiguous urban arts district in the nation." -- 20 Square Blocks Nonprofit advocacy organization for the Dallas Arts District and Board of Directors. Unknown Nonprofit 501(c)(3) organization and is funded by grants, voluntary membership (membership levels ranging from $65 to $1000 with discounts at local performing arts venues), dues, sponsorships and donations. Downtown Dallas, Inc., a nonprofit organization that serves as an advocate for downtown Dallas. The Dallas Arts District's mission is to enhance the value of the city’s creative and economic life by engaging artistic, educational and commercial neighbors through excellent design, practices and programs. The Dallas Arts District enhances the value of the city's creative and economic life. Unknown Unknown Fort Worth History goes back to 1894, when K.M. Van Zandt, an early community leader and farmer, and whose farmland now constitutes the Cultural District. The Cultural District is home to major museums, including the Modern Art Museum, Fort Worth Museum of Science and History, Kimbell Art Museum, and the Will Rogers Memorial Center info not available Plano 2016 A little of more than a year. 24 square blocks The City completed the application. One staff person was dedicated to the task - the Cultural Administrator Funding mechanism - primarily from PID, TIF funds helped to restore the arts venue. 10k comes from the memberships and sponsorships revenue Annual Membership fees $100 for merchants and $25 for downtown residents. Grants. City staff cannot apply for grants so that's where the Plano Arts Coalition comes in and applies for grants - for instance the PAC came in and applied for grants for murals. For examples see Planomural.com Partnership between City Staff, The Historic Downtown Plano Association, and the Plano Arts Coalition Being able to bringing everyone together - once City Council passed the resolution that we want our downtown to represent the arts, everyone circled around the idea. Grants, outside funding, official validation of the district, marketing, etc. "Trying to get everyone over their ego." No local designation. In 2000 the downtown area was on an upswing - this is when DART and the light rail came through, which brought more apartments and merchants. Once the area flatlined, that is when the effort to revitalize the area took effect, which then led to the application for the official designation. Austin 2013 6 months to complete and submit application 6 Square Miles "Six Square"Board of Directors $300k per year plus grants City Funds through Economic Development $300k per year. Additional grant funds - National Endowment of the Arts, local donations. Austin Sports Commission & Visit Austin 4 full time staff members, Partners with Leadership Austin, and Volunteer Committees Graduate student to help establish. Established Partnerships. Kate Singleton (preservation). Founding Executive Director did a wonderful job. Marketing has been successful. Robust social media. Maintaining the historical value of the area that defines the "Six Square" miles. Culturally relevant events for cultural tourists. 1. Would like to have a Cultural Land Grant for long term residents, so they can remain in the Six Square district. Otherwise, residents will be priced out of the market. 2. Working to define "What are you known for"…need to clearly define. -- For instance the "Red River District, which does not hold the State of Texas Cultural District Designation is more widely known as a place for great music. Not a local distinction per say, but Six Square has been an African American neighborhood since 1928.At that time, African Americans were forced to locate in this area of Austin. It has been vernacularly known as "Central South" to the residents of Austin. San Angelo 2009 Less than a year 200 Acres Art Museum Staff Headed by Mr. Howard Taylor, Museum Director. Mr. Howard said that "he would be glad to come and speak on the topic of Cultural District Distinction". No Grants 2k-10k Art Museum Staff The designation itself, to have been officially vetted by the State. Emphasize coordination and input from all stake holders and thoughtful management and marketing with the intent to increase the livability and economic well-being of the entire Concho Valley. Funding, local politics, and you will need one major art entity. No This cultural district was difficult to track information. I spoke with the Fort Worth Main Street Association, they could not provide information. I spoke with the CVB, they pointed out the general area known as the cultural district, but did not know and of the particulars of the state designation. I also spoke with someone from the Fort Worth Cultural District Alliance, but they represent a local district distinction not designated through the State. The information that I found was through google search. Of the cities that I contacted, this was the least organized. Waco 2016 5 Months -- Who wrote Waco's application? A Cultural District Task Force was gathered. Its members represent Waco's civic, cultural, education, business and community interests. This group is now known as the Cultural District Committee. Students from Baylor Film & Located within Waco PID No. 1 - approximately 100 city blocks See page 16-17 of attached "WACO - Management structure of Cultural District Committee". See attached, page 24 - "Developing and sustaining the cultural district" In order to fund the bid to be a Texas Commission on the Arts Cultural District they sold hand painted totes, created by a local artist, at $20-60 each. https://www.creativewaco.org/bag-sales The Board of Creative Waco is the lead organization and is responsible for financial oversight, program approval, implementation, evaluation, and the updating of the Cultural District Strategy. Deliver measurable impact in areas of community-wide strategic priority, tourism growth, talent retention, economic development, and educational enrichment. Promotion of Waco as a vibrant cultural destination at state level and beyond. Texas cultural districts are promoted as great destinations. No Lubbock Approx. 2008 Could not get a definite answer. Spoke with Brook, from the City of Lubbock. She mentioned that the Cultural District is in the initial stages of re-applying for Cultural District distinction. To her knowledge you must reapply every 10 years. They are planning to re-organize their district, because currently the entirety of the area is not walkable. "Always Creative. Never Flat." 1.42 Square Miles Lubbock Arts Alliance City run facilities have their individual budgets, i.e. The Buddy Holly Center, but the remainder of the budget is dependent on public and non-profit entity support. Grant from the City of Lubbock, Supported by the CH Foundation was instrumental in the costs associated with the application process. Other sources include City funds, HOT funds, public donations, and non-profit organization funding. Managed by Lubbock Arts Alliance Non-profit organization "To foster and promote educational, cultural and entertainment programs, to include the visual and performing arts, for the citizens of Lubbock and the surrounding area. 1 | Page TCA Cultural District Designation Application Application Year: City: Name of Cultural District: SECTION A: GENERAL INFORMATION 1. Cultural District Management Entity (CDME): 2. Year CDME took formal charge of cultural district: 3. CDME employer ID number (EIN): 4. CDME is a: ___501(c)(3) nonprofit ____governmental entity ____other a. If other, please describe: 5. CDME DUNS number: 6. CDME contact person: 7. CDME contact person title: 8. CDME chair/president: 9. CDME physical address: 10. CDME city, state, zip: 11. CDME mailing address: 12. CDME city, state, zip: 13. CDME email: 14. CDME website: 15. CDME phone: 16. CDME Texas Legislators: a. Texas House: b. Texas Senate: 17. Cultural district Texas Legislators (if district is covered by more than one, please list all): a. Texas House: b. Texas Senate: 2 | Page SECTION B: CULTURAL DISTRICT GOVERNANCE 1. Describe the cultural district governance structure and membership makeup: 2. Describe the qualifications of the CDME staff and leadership (particularly in managing a cultural district): 3. How frequently does this group meet? 4. Are minutes of these meetings kept? 3 | Page SECTION C: CULTURAL DISTRICT PROFILE BY-THE-NUMBERS 1. Year cultural district was established: 2. Number of annual visitors to the cultural district last year: Take care not to double-count any organizations listed in #3 to #5: 3. Current number of nonprofit art organizations physically located in the cultural district (e.g., art museums, music, dance, film, theater, literary arts, folk/traditional arts, visual arts): 4. Current number of nonprofit historical/cultural/natural heritage organizations physically located in the cultural district (e.g., history museum, children’s museum, botanical garden, parks, heritage site, science museum, library): 5. Current number of arts-related for-profit businesses in the cultural district (e.g., commercial gallery, art supply store, bootmaker, etc.): 6. Current number of artists living or working in the cultural district: 7. Current number of restaurants in the cultural district: 8. Current number of those restaurants that are locally originated (vs. chain or franchise): 9. Current number of hotels/B&Bs in the cultural district: 10. Total number of guest rooms/suites in those hotels/B&Bs combined: 11. Number of bars/clubs in the cultural district: 12. Number of bars/clubs with regular (at least monthly) live performances: 13. Number of festivals/art walks held annually in the cultural district: 14. Three biggest drawing events/exhibitions/activities in the district last year: a. b. c. 15. Using Google Maps, what is the walk time, one-way between the farthest points of the district: a. length of the district: b. width of the district: 16. Are 100% of the sidewalks in the cultural district ADA compliant? 17. Total marketing cash expenditures made for cultural district last year (not to market individual institutions): 18. Total return on investment (ROI) of the cultural district last year: 4 | Page SECTION D: CULTURAL DISTRICT PROFILE 1. Cultural district website: 2. Brief description of the overall community where the cultural district is located (proximity to other communities, highways, airport, economy, assets, demographics, etc.): 3. Brief description of the cultural district and how it benefits the community: 4. Describe systems currently in place for tracking visitors: 5 | Page 5. Describe how the ROI of the district is calculated: 6. What are the three biggest challenges for the district? SECTION E: ASSETS & AMENITIES 1. Describe the current artistic assets of the cultural district (may include arts, entertainment and cultural organizations, local performing arts organizations, museums, commercial galleries, artist studios, arts schools, cinemas, and other entertainment facilities): 6 | Page 2. Describe the other cultural assets in the cultural district (Cultural assets can be material, immaterial, emotional, or even spiritual. Examples are historic properties, events, heritage sites, gardens, libraries, parklands and even stadiums. Stories, too, might be cultural assets if they are attached to particular peoples and places.): 3. Describe the visitor amenities in the cultural district (hotels, restaurants, bars, shopping, etc.): 4. Describe the current and ongoing events and activities occurring in the cultural district, noting when the event began and providing some information about the audience and the event (exclude from this section any events that are planned and have not yet occurred): 7 | Page 5. Describe the visitor navigation and transportation options in and around the cultural district (parking availability, biking, public transportation access, wayfinding, etc.): SECTION F: CULTURAL DISTRICT PLANNING 1. Describe the assessment that was conducted prior to the creation of the cultural district plan. Describe how the general public, artists, arts organizations, cultural entities, business representatives, and government representatives were involved in the needs assessment. 2. Describe the assessment of the artists living and working in the cultural district and the amenities available to them (studio space, affordable housing, rehearsal and art making space, etc.). 8 | Page 3. Describe the planning process and who was involved. Discuss how the assessment was used and if an outside consultant was used in the creation of the plan. Make sure to describe how focus groups and/or public meetings were utilized to gather feedback on the preliminary planning documents. Include a description of proposed events and activities for the cultural district, noting how the event fulfills a need, what audiences will be targeted, and when the event is expected to occur. 4. What is the vision for the cultural district? 5. What is the mission of the cultural district? 9 | Page 6. List five goals that resulted from the cultural district planning process (the plan should cover a five-year period and include a timeline, staffing, and resources required for each goal): SECTION G: MARKETING THE CULTURAL DISTRICT The primary goal of any cultural district is to attract visitors to the activities and programs that occur in the district. Summarize the top five marketing strategies for the cultural district outlined in the separate marketing plan document: 10 | Page SECTION H: FIVE-YEAR BUDGET FOR CULTURAL DISTRICT NOTES: Budget should include funding to achieve planning and marketing goals described in application. ALL of the funds reflected in this budget should be CASH that flows through the financial books of the CDME INCOME Year 1 Year 2 Year 3 Year 4 Year 5 Earned Income Admissions, box office Fees Interest Other earned income (describe on next page) Private Income Contributions Foundation support Other private income (describe on next page) Carry over cash from previous year Government Support Local government support (HOT) Local government support (General Fund) State government support Federal government support Other government support (describe on next page) TOTAL INCOME EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5 CDME, salaries, benefits, contracts Artistic salaries, benefits, contracts Facility and CDME operations Marketing and promotion costs Program and event costs Capital expenditures TOTAL EXPENSES SURPLUS/DEFICIT (explain on next page) 11 | Page Notes to the budget (break out the detail of the budget and give a description of each category) List any commitments for in-kind/donated services such as public relations, marketing, facilities, etc. (These may include contributions and things that do not run through the financial books of the CDME) 12 | Page SECTION I: ASSURANCES PAGE Assurances If designation is granted, the applicant hereby gives assurance to the Texas Commission on the Arts that: 1. The activities and services for which designation is sought will be administered by the applicant organization; 2. The applicant agrees to complete annual reports and submit to a reauthorization process at the end of each ten- year period in order to remain a TCA designated cultural district; 3. The applicant has read, understands, and will conform to the intent outlined in the Guide to Programs and Services; 4. The applicant will comply with Title VI of the Civil Rights Act of 1964, with labor standards under Section 5(j) of the National Foundation of the Arts and Humanities Act of 1965, with Section 504 of the Rehabilitation Act Amendments of 1974, with Title IX of the Education Amendments of 1972, with the Americans with Disabilities Act of 1990, with the Age Discrimination Act of 1975, and with the Drug Free Workplace Act of 1988; 5. The applicant will comply with Section 10(7)(b) of the Commission’s Enabling Legislation, which prohibits the Commission and its grantees from knowingly fostering, encouraging, promoting, or funding any project, production, workshop, and/or program which includes obscene material as defined in Section 43.21 Penal Code of Texas; 6. If the applicant is a nonprofit entity as defined by the I.R.S., an educational institution, or a unit of government, the application has been duly authorized by an authorized official for the applying organization. X_________________________________________________________ ORIGINAL SIGNATURE Name of Authorizing Official: Title of Authorizing Official: Mailing Address: City/State/Zip: Email: Phone: 13 | Page REQUIRED ATTACHMENTS: 1. Audiovisual sample: Think about your AV as a combination of a virtual visit to the district and a graphic version of this application. Spend time developing these materials. Evaluators will get as much (or more) information from your AV materials as they do from your written application. Quality counts! Evaluators use AV to judge Artistic Quality (50 out of 100 points - half of your score). Make sure your AV tells the whole story of the cultural district. This is your opportunity to show the cultural district using pictures, video and story. Think about this as a way to introduce your cultural district to visitors. The evaluators will view NO MORE than five minutes, so make sure that the audiovisual material fits within the time limit. 2. A map of the city. 3. A map of the cultural district. 4. A resolution or letter of endorsement from City government. 5. CDME policy and commitment to accessibility and the ADA. 6. CDME board/committee roster with titles and affiliated organizations or institutions included. 7. Detailed cultural district plan including plans for sustaining the cultural district for five years (25 pages maximum). Must include SWOT analysis: strengths, weaknesses, threats and opportunities. 8. Detailed cultural district marketing plan for five years (15 pages maximum). 9. List of pertinent web links (focus on premium art and cultural organizations, unique things, events, and area amenities that are important to attracting tourism). 10. Signed Assurances Page (application original must include an original signature). Optional attachments: • Resolution or letter of endorsement from County government • Between 3 and 5 unique letters of support and commitment for the cultural district APPLICATION DEADLINE: June 15 (postmark deadline) Mail the original application and six copies to: Cultural Districts Designation Program Attention: Jim Bob McMillan, Deputy Director Texas Commission on the Arts PO Box 13406 Austin, TX 78711-3406 OR Courier the original application and six copies to: Cultural Districts Designation Program Attention: Jim Bob McMillan, Deputy Director Texas Commission on the Arts 920 Colorado, Suite 501 Austin, TX 78701 Questions: Jim Bob McMillan, 512/936-6572 or jbm@arts.texas.gov