Coppell City Council has approved the appropriation of about $2 million to cover the arts center’s operating deficit. Egan said the deficit largely comes from $1.7 million allocated for general operating costs and $350,000 to cover fees for the “Presents” series. Egan provided feedback during a work session Aug. 29, which was focused on outlining potential next steps in the management of the arts center.
The overview
The Coppell Arts Center, located in Old Town Coppell, hosts several resident performing arts companies in addition to paying a fee to bring in outside artists for the “Presents” series. Egan said the facility also rents to third parties for events in addition to collecting revenue from concessions and ticket sales.
“We’re still learning, roughly two years in, the business,” Egan said. “We’re learning what we can sell tickets for, how many tickets we can sell, what people are willing to pay to rent the building on the market [and] what people will pay for concessions. In the meantime, the city has been asked to play a meaningful role financially.”
During the study, Egan said there were a few areas to focus on when it came to generating additional revenue while maintaining a strong relationship with the community and city. He also outlined a five-year plan to trim the city contribution to about $1 million because of additional revenue generated by the Coppell Arts Center and the Coppell Arts Center Foundation.
Dig deeper
Egan outlined a $300,000 annual fundraising goal by the fifth year starting with $100,000 in 2024 and increasing by $50,000 in subsequent years.
“In order to make this happen, the foundation is going to need a lockstep relationship with the ‘Presents’ series and leaders of the resident companies,” Egan said. “In the end, they are fundraising to support the work that the arts center and resident companies are doing.”
Another area highlighted was reviewing usage and rental fees for the center, including charging a 95% subsidized rate to resident companies, along with revisited fees, providing a revised booking structure that would guarantee six block dates for resident companies.
In the event an irreconcilable conflict emerged, one suggested recommendation was prioritizing revenue-generating bookings for the arts center, Egan said. For the “Presents” series, he recommended the center look at reviewing the total number of tickets, their costs and potential ways to slightly trim expenses.
Additionally, once any changes are implemented, Egan said it would be beneficial to schedule a one-year review of them to ensure all parties are content.
What’s next?
During the work session, no binding action was taken. Mayor Wes Mays said further discussions would need to be held on the topics presented.
“At some point in the future, we’re going to have to come back and chat with a little bit more serious discussion about how we’re going to manage the arts center and some specifics,” Mays said.
