Let’s Finish the Fox this year
ou’ve probably heard about the idea to get the Fox Theatre reopened by the end of 2005 by having the City/Rio Nuevo secure a bond with which to loan the Fox Tucson Theatre Foundation the remaining $5.6 million needed to complete the renovation of the theatre, which will be 75 years old in April.
The conclusion of work on the theatre’s lobby area this spring will bring the renovation to 40% completion. Fundraising continues for the overall project, but not at a rate that will keep pace with inflationary pressures on building materials. Last year the foundation raised almost a million dollars, with about $400,000 coming from private sources, but inflation is raising the project’s cost by half a million dollars per year. At this rate, the theatre won’t be completed for years, despite the fundraising galas, the sidewalk stars, the grants, and the private donations. Hence the idea to simply loan the foundation the rest of the money, get it reopened, and then require repayment from continued fundraising and operating income. Obviously there’s no operating income until the theatre is reopened.
The primary question on the minds of city council members who have reviewed the proposal is whether the foundation is capable of elevating its fundraising performance and repaying the loan. I don’t know the answer to that either, but I am skeptical that another group could be brought in that could do significantly better. The best thing that can happen to encourage people with an entrepreneurial public spirit to follow their dreams would be to let the Tucsonans who’ve poured their heart and soul into this project see their effort to fruition and let them share in the occasion of the theatre’s reopening.
Seven years ago, the Fox Theatre project consisted of Herb Stratford’s dream and a flashlight. Herb and the founding board members’ effort preceded Rio Nuevo, and what they accomplished should not be forgotten. Much attention has been focused on the failure to fund-raise to the levels expected when Rio Nuevo agreed to contribute $3.5 million to this renovation, now expected to cost $13 million. But this glass is definitely “half-full”, not “half-empty”.
The Foundation’s accomplishments have been steady and significant, especially when you consider they started with virtually nothing. Building a corps of volunteers, acquiring the theatre building, conducting feasibility studies, making basic and structural repairs, raising money from over 600 individuals, putting on sophisticated fundraising events, re-creating the marquee to establish visibility, creating a community archive of information about the Fox and finding ways for people to reconnect with the Fox’s history, writing 67 grant proposals, giving countless tours, recruiting users such as UA Presents, and generating significant attention for the project both here and outside of Tucson, . . . the list of accomplishments in this labor of love goes on. Herb, his board, and the Friends of the Fox, with financial help from Rio Nuevo and the City, have achieved a great deal.
The foundation knows that it must perform and has taken significant steps to increase its fundraising capacity and minimize the City’s risk. They’ve hired a development director, someone with experience in, and direct responsibility for, fundraising. New private sector support, from the Friends of Downtown and others, has stepped forward. I understand that a new Downtown investor recently contributed $25,000 to the effort.
The City Council rightly sees its role as guardians of the public’s financial interests in this project. They will want to be assured that the foundation can deliver, and cover the debt service on the proposed loan. I am confident that the right steps have been taken to get the fundraising, in tandem with operating income, over the top. However, I would submit that, should the foundation fall somewhat short, the potential for the timely reopening of the Fox to kick-start business and investor confidence that Downtown revitalization in Tucson is well worth the additional public investment.
The economic and psychological impact of an early 2006 grand reopening would be significant.
With the Fox open 150 nights or so per year, there will be a significant reason for people to come Downtown or stay here after work, patronizing restaurants and shops. The atmosphere and perception of Downtown will change for the better. Downtown is pretty quiet after 5:00 most nights, but bringing in up to 1,200 patrons for an evening show will create a new vitality to the street. Restaurants that close now by 3:00 will stay open through dinner to capture some of the pre-show crowd. Restaurants and bars that are open at dinnertime already will see a boost both before and after shows. Out-of-town visitors may have a reason to extend their stay in Tucson another day.
The City and the Rio Nuevo District will both benefit from the incremental sales tax revenue. A business that opens around New Year’s, just after the Fox, could provide, over seven-plus years, a direct contribution of 2.5 cents per sales dollar to the Rio Nuevo District. For a half-million dollar business, that’s nearly $100,000 in Rio Nuevo revenue over the remaining life of the District, money that can be used to help other worthy projects down the road. Add that impact to the new tax revenues generated by other new businesses and increased sales at existing businesses.
As Rio Nuevo’s first completed attraction, the Fox would provide evidence that the Rio Nuevo redevelopment project is real, thereby accelerating the process of property and business investment. The positive impacts will amplify and reinforce each other.
The benefits associated with getting this done now outweigh the risks that the entire loan may not be repaid. The longer we wait, the more expensive the project becomes, and the more we delay a real opportunity to give Downtown a shot in the arm. It will be well worth it to get a major attraction open and start generating momentum on Congress Street.
Donovan Durband
Executive Director, Tucson Downtown Alliance
Friend of the Fox
From The Editor