Tuesday, March 19, 2024

Dallas grinds through difficult ATTPAC bailout process

Editor’s note: For more background on this issue, read our earlier editorial  $15 Million Dollar Bailout for ATTPAC, We Think NOT

By David Wilfong, NDG Special Contributor

A proposed bailout of the AT&T Performing Arts Center (ATTPAC) by the City of Dallas has raised concerns over the money spent by the community at large, and the fairness in the application of city resources among smaller and minority-focused arts groups in Dallas.
Jennifer Scripps, director of the Dallas Office of Cultural Affairs (OCA), outlined the contract amendment for members of the city council at a meeting of the Arts, Culture and Libraries (ACL) committee on Sept. 19. She believes the focus on ATTPAC is a positive move for all arts organizations as well.
“It’s been very complex getting all of the smaller arts organizations to review it and think about their own business and how this can actually help them and be seen as a true asset for the entire arts community in Dallas,” Scripps said.
As for why the focus on ATTPAC is important, Scripps noted the City of Dallas owns the Winspear Opera House and the Wyly Theater. During construction, the city put up $17 million for construction and $9 million for land. ATTPAC took on a debt of $151 million in the process. The city already contributes $2.5 million per year in operating costs.
“They (ATTPAC) have secured, independent from the city, a tremendous package to help bring this debt down,” Scripps said. “The banks are participating to the tune of $45 million. Private donors have already paid $56 million with $8 million in donor pledges still to be paid. And importantly, ATTPAC has committed to raising another $27 million over the terms of this agreement. That leaves the city portion of $15 million, and for that we are contracting for increased artist support services, which is important.”
Benefits Scripps sees coming to the city include ticketing and marketing support for smaller arts organizations, as the ATTPAC can operate on a larger scale which includes an e-mail marketing list 155,000 strong. The ATTPAC also has a marketing team and can coordinate effective use of venues in the community, including use by smaller organizations.
One question consistently raised is whether the deal is “set in stone” for the full 10 years. Scripps said all programs are revisited on either a quarterly or annual basis, and the agreement could be adjusted if further sources of revenue, such as an increased surcharge on tickets, could ease the financial burden.
“Each year it’s up for review to make sure that everything is as being promised to us in terms of the banks and everybody else,” said Deputy Mayor Pro Tem Erik Wilson. “So we’re making sure everyone is doing what they’re supposed to be doing. It’s not a blank check or a blanket guarantee.”
At the same meeting, Dallas City Councilmember Scott Griggs gave a stern rebuke of the manner in which he saw the bailout being pursued, saying the final details should be available before even making a preliminary decision.
“We’ve got the seventh floor and the fourth floor slow-playing the council with a powerful outside interest,” Griggs said. “So you’re going to lock up the money in the budget on Wednesday, then the rest of this is just basically smoke and mirrors. It’s extremely disappointing.”
Councilmember Jennifer S. Gates said had been “taken aback” when confronted with the bailout request, but that she saw it as being in the best interest of the city.
“These are city-owned buildings, and I want the city in control of the keys, and not the banks,” Gates said. “And this is the first step to make that happen. I’ve been hearing from a lot of people in the City of Dallas, and they share those feelings and want to see this happen.”
Some have criticized the bailout as being unfair to minority arts interests in Dallas. With respect to minority arts organizations, the increase in funding to the ATTPAC does come with increases to programs that are specifically targeted to minorities.
“If you have an increase to the Office of Cultural Affairs budget for contractual services and indirect support to, organizations whose mission is not culturally-specific – such as the ATTPAC – it shall be accompanied by corresponding percentage increases to the budget for services by, and indirect support to, culturally-specific and ethnic organizations,” Scripps said, citing city policies. “Once we figured out that this would trigger that, we needed to find $285,000 for the cultural and ethnically-specific organizations.
Furthermore, in a Sept. 21 meeting of the Dallas City Council, Griggs also successfully entered an amendment to provide for city support to smaller non-city-owned cultural arts organizations in Dallas. The motion passed, and $400,000 will be set aside for use by four cultural arts entities which meet the city’s criteria. Those funds will be pulled from the OCA’s maintenance budget.
At the same meeting, Councilmember Philip T. Kingston attempted to enter a motion to withdraw the $1.5 million in support for the ATTPAC and divert it into street services. Mayor Rawlings refused to entertain the motion, and a call for hands to overturn the mayor’s refusal failed. The council then voted to place the ATTPAC bailout in the next year’s budget.
David Lozano, executive artistic director of the Cara Mia Theatre, a Hispanic performing arts organization, sought to get the city to consider a “Dallas Citywide Arts Impact Project instead,” and had launched a petition for this concept on Change.org.
“With our city-wide arts project, we were trying to create what we call ‘Pop-up Cultural Centers’ so that they would be a home base for community programming in these areas and that people could depend on it,” Lozano said. “So right now, it’s a conversation that’s on the table with the OCA. (Scripps) seems to like the idea, but it just couldn’t compete with the (ATTPAC) bailout.”
He noted the $285,000 increase for culturally-specific and ethnic arts programs was a move in the right direction, but with the bailout winning council support, he has returned full focus onto his theater group.
While the council has voted the bailout into the budget, the final terms of the agreement still require approval to go forward. A final draft of the agreement will be presented to the ACL committee on Oct. 17. If accepted, the final agreement will go to vote by the full council on Oct. 26.
“I haven’t seen the final draft yet,” Wilson said. “I have to see that make sure nothing has changed between what is being said now, or if anything has changed. But anything we can do to increase the art exposure in the City of Dallas is a great thing. Anytime we can begin to work with smaller arts organizations, to help them, I think is great. That way we can expose more communities to the arts that wouldn’t normally have the level of exposure. And it helps in a way to decentralize and expand the arts programs of the City of Dallas.”

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