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<br /> 3. An artist-manager would be selected to monitor/supervise the space in exchange for reduced rent.
<br /> 4. The budget forecast provided below is conservative. Excess revenue generated by the Studios would be used to
<br /> secure additional mill space(see Phase 2)
<br /> Five-year budget forecast:
<br /> Income(Assumes a 2.5%annual increase) Per month-Year 1 Notes YEAR 1 YEAR 2 YEAR 3 YEAR4 YEAR 5
<br /> Re nt Per person cost
<br /> Space $ 550.00 275(x2) $ 6,600.00 $ 6,765.00 $ 6,934.13 $ 7,107.48 $ 7,285.17
<br /> Space $ 550.00 275(x2) $ 6,600.00 $ 6,765.00 $ 6,934.13 $ 7,107.48 $ 7,285.17
<br /> Space $ 550.00 275(x2) $ 6,600.00 $ 6,765.00 $ 6,934.13 $ 7,107.48 $ 7,285.17
<br /> Space $ 275.00 275(xl) $ 3,300.00 $ 3,382.50 $ 3,467.06 $ 3,553.74 $ 3,642.58
<br /> Space E $ 275.00 275(x1) $ 3,300.00 $ 3,382.50 $ 3,467.06 $ 3,553.74 $ 3,642.58
<br /> Space F $ 600.00 300(x2) $ 7,200.00 $ 7,380.00 $ 7,564.50 $ 7,753.61 $ 7,947.45
<br /> Space G $ 600.00 200(x3) $ 7,200.00 $ 7,380.00 $ 7,564.50 $ 7,753.61 $ 7,947.45
<br /> Admin space $ (100.00) Less$100 rent for manager of space $ (1,200.00) $ (1,230.00) $ (1,260.75) $ (1,292.27) $ (1,324.58)
<br /> 3 Vacant Studios $ (600.00) $ (7,200.00)
<br /> 2 Vacant Studios ($550) $ (6,600.00)
<br /> 1 Vacant Studio ($300) $ (3,600.00) $ (3,690.00) $ (3,782.25)
<br /> Total Rent $ 2,700.00 $ 32,400.00 $ 33,990.00 $ 38,004.75 $ 38,954.87 $ 39,928.74
<br /> Sales
<br /> Commission of sold work(30%of price) $ 120.00 $400 sales per month $ 1,440.00 $ 1,483.20 $ 1,527.70 $ 1,573.53 $ 1,620.73
<br /> Total Sales $ 120.00 $ 1,440.00 $ 1,483.20 $ 1,527.70 $ 1,573.53 $ 1,620.73
<br /> Total Income $ 2,820.00 i 00 i
<br /> Expense(Assumes 3%annual increase in expense)
<br /> Rent $ 2,700.00 With 5 year lease $ 32,400.00 $ 33,210.00 $ 34,040.25 $ 34,891.26 $ 35,763.54
<br /> Utilities $ 130.00 Based on past history $ 1,560.00 $ 1,606.80 $ 1,655.00 $ 1,704.65 $ 1,755.79
<br /> Insurance $ 40.00 $ 480.00 $ 494.40 $ 509.23 $ 524.51 $ 540.24
<br /> Other $ 150.00 $ 1,800.00 $ 1,854.00 $ 1,909.62 $ 1,966.91 $ 2,025.92
<br /> Total Expense 0.00 36,240.0040,085.49
<br /> NET $ (200.00) $ (2,400.00) $ (1,692.00) $ 1,418.34 1 $ 1,441.07 1 $ 1,463.98
<br /> PHASE 2: SUITE 29 OPEN SPACE
<br /> Suite 29 is a raw, open room that would be used for the following purposes: #
<br /> • Exhibit space:The majority of Hillsborough galleries are co-ops, meaning
<br /> only members are allowed to exhibit. Suite 29 would be open tojuried
<br /> artists desiring space to show their work. Exhibits would be managed and
<br /> juried by the OCAC, in exchange the OCAC would keep a 30%commission
<br /> on work sold.
<br /> • Class space:The OCAC would host two classes per month for the local
<br /> artist community, allowing revenue generation through class fees.The
<br /> space would be rented out by artists and organizations wishing to host
<br /> classes for the public; a 30%cut of fees will provide the OCAC revenue
<br /> while minimizing risk for the host(as opposed to an hourly fee).
<br /> • Event rental:The space could be rented for special events at a general rate
<br /> of$ioo/hour(more for for-profit businesses), providing an affordable venue for local organizations and
<br /> individuals to host parties, meetings, and other events.
<br /> Potential Economic Impact:
<br /> • Patrons of events and classes would patronize West Hillsborough businesses
<br /> • Money spent by class participants and organizations would stay local, rather than being spent in surrounding
<br /> counties.
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