The Economic Improvement Corporation (EIC) on Tuesday convened its first regular meeting since being reconstituted with three new members: Greg Richards, Danny Almond, and Aaron Yates. The main order of business on Tuesday was to hold a public hearing for a potential funding agreement between Kerrville’s Fourth on the River (the non-profit that owns the Arcadia Theater) and the EIC.
Following the public hearing and executive session, the EIC approved the funding agreement unanimously. The contract must now be approved by City Council in order for the funding to move forward.
In the proposed agreement, the EIC will provide $600,000 to the nonprofit to go towards the $2.3 million renovation budget. Kerrville’s 4th on the River intends to use the property for live music and other performances and events. As part of the agreement, the nonprofit must meet specific performance measures, such as a specific number of public shows during the first three years. The entire agreement is being finalized and will be made public in the City Council agenda packet for their June 25 meeting.
The $600,000 provided by the EIC does not cover the entire renovation budget. As mentioned, the entire renovation budget is approximately $2.3 million. In addition to the $600,000 EIC contribution, the nonprofit will also request $400,000 in HOT funds (Hotel Occupancy Tax funds) which must be approved by City Council. The remaining $1.3 million will be raised through private philanthropy and donations.
- $600,000 from EIC (4b Sales Tax)
- $400,000 from HOT funds (Hotel Occupancy Tax)
- $1.3 million from private philanthropy and donations
- EIC will contribute $600,000 in grants to the Arcadia project
- The nonprofit that owns the Arcadia must meet certain milestones and performance requirements to “earn” the funding
- Kerrville’s 4th on the River will seek an additional $400,000 in HOT funds
- The entire renovation budget is $2.3 million, the remainder of which will be funded by private donations