Agenda - 03-15-1994-X-D - Laserfiche WebLink

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THE ARTSCENTER, INC. ORANGE COUNTY APPLICATION EXHIBIT F (DETAILED REQUEST) 11 MARCH 1994 PRINCIPAL ASSUMPTIONS 1. The owners of the building have signed a purchase and sale agreement with The ArtsCenter. 2. The ArtsCenter is able to maintain operational stability. 3. Coincident with purchase of the facility, The ArtsCenter will obtain forgiveness of a $133,000 obligation(including interest)to The Mary Reynolds Babcock Foundation, thus reducing the long-term liability of$430,326 to $297,326. 4. Coincident with purchase of the facility, an additional $139,976 upfit loan will be paid, further reducing the long-term liability of $297,326 to $164,350. 5. The ArtsCenter is the only arts center in Orange County and facilitates other arts organizations under its umbrella. 6. The purchase will be all cash with no acquisition of debt. 7. The Triangle Community Foundation(TCF)has agreed to handle the Capital Campaign funds. All donations to the capital campaign(except operational funds)will be placed in this fund and TCF will oversee distribution of the money at closing. 8. At the campaign's completion, The ArtsCenter will own its building and have no debt. 9. It is assumed that the Capital Campaign will run from January 1994 through December 1995 (see following page for flow chart). 10. According to projections, purchase of the building will result in total contribution by the local governments of approximately$500,000 over the next 10 years. Without ownership, The ArtsCenter will have to seek contributions of$750,000 over the same period. See Attachments A and B. 11. Once the funds to purchase the building($575,000) are raised, the remaining debt can be reduced at a slower pace. The ArtsCenter is currently paying approximately $25,000 each year in debt repayment which includes some interest(Attachment C). Restructuring $164,350 is well within the center's capability. 300-G East Main Street, Carrboro, North Carolina (919) 929-2787 3