-       An economic impact assessment of direct and indirect spending caused by the Theater 

 -        Update the prior study 

 -       An options assessment including:

•  Maintain the current management approach 
•  Integrate operations into the Village 
•  Align the Theater operations with another public entity 
•  Close the Theater and sell the property 
• Add 200 seats 
•  Other options identified by Johnson Consulting 

Based on the results of their analysis, Johnson Consulting reported that, “On an annual basis, (the) total economic and fiscal impact (of the Metropolis Theater) is estimated to include $3 million of direct spending, $1.8 million of combined indirect and induced spending, $1.7 million of increased earnings, 30 full-time equivalent jobs, and $297,000 in (Village, County and State) tax revenues...”  Total direct tax revenues to the Village of Arlington Heights attributable to the Metropolis Theater are estimated to be about $84,000 per year. Johnson Consulting recommended an action plan which is presented in the “Executive Summary” and “Findings and Recommendations” sections of their study.  

To provide the Village Board with a clearer sense of the one-time and annual costs of the options reviewed by Johnson Consulting, Staff prepared the attached “Metropolis Study Results - Cost Summary of Options”.   The costs shown in this summary include costs identified in the Johnson study, the Metropolis Theater’s financial statements as of December 31, 2014, annual CAM and Building Reserve costs from the Metropolis Commercial Condominium Association, and annual budgeted equipment and depreciation costs shown in the Village’s Arts, Entertainment & Events Fund. 

Once staff receives direction from the Village Board in regard to Metropolis’ future, an upcoming Committee-of-the-Whole agenda item can include a separate review of the Arts, Entertainment & Events (A, E & E) Fund to discuss projected expenditures and revenue options.  Such a discussion will likely not occur before the scheduled March 9th Village Budget Review meeting. However, final action on the Interim 8-Month Budget ending December 31, 2015 is not required until mid-April 2015, thus the Village Board’s decision on the A, E & E Fund can be made after March 9th meeting, possibly on March 30, 2015. 

MPAC is currently working on their budget projections for the Interim 8-Month Budget Ending on December 31, 2015, as well as for the 2016 budget year starting on January 1, 2016.  They expect to have the following information as of the dates listed below: 

8-Month Budget Ending December 31, 2015         February 16, 2015 

Initial 2016 Budget Projection                              March 2, 2015 

Business Plan Executive Summary                      March 18, 2015