The Metropolis Theater has weathered some difficult times due to the pandemic, followed by post-pandemic inflation, and ongoing concerns by some patrons about indoor public gatherings. For the last few years, ticket sales for live-performance theaters across the nation have gone down significantly, causing numerous theaters to close or reduce their offerings. By closely watching their expenses, and due to the receipt of federal PPP forgivable loans and Shuttered Venue grants, the Metropolis Theater has been able to continue to offer performances and classes during these challenging times. The aforementioned loans and grants previously provided the Theater with a significant reserve amount, which has now been drawn down to cover ongoing costs over the last couple of years
Staff has met with theater leadership multiple times over the past several months. While challenges exist, the leadership seems to have a good understanding of the financial pressures and has been transparent about it with the Village. Thankfully, more recent ticket sales experience has started to show positive improvements, but are still not at pre-pandemic levels. As outlined in the attached request from the Metropolis Theater, they are planning a “Secure Our Future” fundraising campaign. As part of this campaign, the Theater is requesting the use of existing Restricted Contribution reserve funds that are maintained in the Village’s Arts, Entertainment, & Events Fund. These monies would be used as matching funds for donations sought from a wide-variety of regional businesses and individuals. A number of years ago, the Village established the Restricted Contribution reserve to provide the Theater with emergency capital and operations funds, given the uneven economics of the theater business. The pandemic and its aftermath clearly represent this type of extraordinary event.
The Metropolis Theater is requesting the use of $200,000 of the current $371,000 Restricted Contribution reserve balance, as a matching component to its upcoming fundraising campaign, which is needed to support its ongoing operations
Recommendation
Staff recommends that the Village Board approve the attached Ordinance amending the Arts, Entertainment, & Events (515-2005-540810-) budget in the amount of $200,000.