Kerrville City Council approved two funding agreements for the renovation of the Arcadia Theater on Tuesday night, moving the ball forward on a $2.3 million effort led by the nonprofit Kerrville’s 4th on the River (KFOR). The group applied for and received a $600,000 grant from the EIC (Economic Improvement Corporation 4B salex tax monies) along with $400,000 of HOT funds (Hotel Occupancy Tax). The group will raise approximately $1.3 million in private contributions to fully fund the project.
The $600k in 4b funds were approved by EIC last week, but council had to give its blessing for the grant to become “official.”
The KFOR nonprofit group plans to open the theater by July 3, 2020.
A short presentation was made to council and some of those slides are presented below.
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