Shore Cultural Center

Shore Cultural Center

Shore Cultural Centre Five Year Strategic Plan Facilitated and drafted by Coral Management Company September 2009 Approved April 5, 2010 by Euclid City Council RES. 41-2010 Acknowledgements The Shore Cultural Centre Five Year Strategic Plan is the culmination of the efforts of many citizens, individuals, groups and City leadership and staff who have devoted their time and energy to the future of the Shore Cultural Centre. We wish to extend our sincere appreciation to everyone who made this plan possible through their enthusiasm, commitment, creative input and support. A special thank you is extended to the Shore Cultural Centre Strategic Plan Project Steering Committee. Shore Cultural Centre Strategic Plan Project Steering Committee Bill Cervenik (Mayor) Kathy Will (Director, Parks and Recreation Department) Mac Stephens (Program Administrator, Recreation Department) Frank Pietravoia (Director, Development Department) Jim Sonnhalter (Project Manager, Development Department) Mike ONeill (Ward 5 Councilman) Daryl Langman (Ward 7 Councilman) Madeline Scarniench (Ward 2 Councilwoman) Kirsten Holzheimer Gail (Council President) Mary Jo Minarik (Ward 4 Councilwoman) Del Tekieli (Shore Cultural Centre Board Rep.) Fayne Copeland (Shore Cultural Centre Board Rep.) Plan Prepared by: Coral Management Company 13990 Cedar Road University Heights, Ohio 44118 216.932.8822 Peter L. Rubin (President and CEO) Jeffrey Epstein (Vice President of Development) Lisa Wiener (Vice President of Commercial Leasing) Kristin Esser (Sr. Director of Commercial Property Management) Laura Kidder (Property Manager) Approved April 5, 2010 by Euclid City Council RES. 41-2010 2 Plan Table of Contents 1. 2. 3. a) b) c) d) 4.

5. 6. a) b) c) d) e) f) 7. 8. 3 Executive Summary 4 Background and Process Overview Key Findings Market Research 25 Capital Needs 39 Funding Opportunities 55 Community Engagement 70 Mission 81 Organizational Values 86 One, Three, and Five Year Objectives Programmatic/Leasing/Marketing Community 102 Financial/Operations 105 Governance/Ownership 117 Fund Development 123 Parks/Outdoor Space 127 Five Year Financial Forecast 130 Exhibit RES. 41-2010 134 18 90

1. Executive Summary 4 1. EXECUTIVE SUMMARY Community Needs + Visioning A comprehensive community engagement process demonstrated virtually unanimous consensus that Euclid has a need for arts and cultural programming and classes Many also agreed on Euclids need for a community center, with arts and culture being a core community center use Community stakeholders expressed many aspirational goals for such a center, and commonly expressed a desire for 5 a place that expands its arts and cultural offerings to enhance the quality of life that Euclid offers its residents a safe and constructive place for Euclid youth to participate in recreational, arts, and educational enrichment programs a place that Euclid is known for throughout the region that draws visitors from surrounding communities and beyond an economic engine Euclid can use to incubate new business concepts and train/retrain its workforce a true gathering place to foster community and break down barriers between Euclid residents 1. EXECUTIVE SUMMARY Plan Vision and Users Community arts and cultural centers exist across the country that meet the

aspirational goals identified by the Euclid community and many are in converted schools facing precisely the same challenges as the Shore building These comparable centers inform the plan for Shore, and show that success is possible with: Many of these centers struggled for years as they worked to build the right mix of programs and address physical building needs Shore is not starting from scratch and success will not come overnight. A phased approach is necessary to transition from what Shore is now to what it can become 6 Public or nonprofit ownership and management Tenant mix including arts and cultural classes, galleries, studios, theater performances, nonprofit offices, cafs, yoga studios, and rooms available for rental to the public Strong community partnerships Regional attraction of tenants and users The vision for Shore is focused on arts and cultural users, with a wide spectrum of complementary users that can enhance the arts and cultural core users Some current users do not fit with the longer term vision for Shore, but for financial reasons may need to be transitioned out over time The mission, organizational values, and objectives identified in this plan will guide future decisions about Shore tenants and users 1. EXECUTIVE SUMMARY Shores Assets and Liabilities The strong consensus on Euclids community needs leads to the question is Shore Cultural Centre the right building/vehicle to meet these needs? The Shore building does have strong assets that make it suitable to be Euclids arts and cultural center

However, the Shore building also has numerous liabilities 7 Auditorium with strong acoustics School classroom setup Ample and flexible indoor and outdoor space Location in the heart of downtown Historic setting a building with character Core group of arts/cultural tenants Dedicated and passionate volunteers Lack of substantial capital investment or proper care and maintenance over the past 20 years has led to physical deterioration of the building Shores financial performance is a drag on the City budget Current tenant mix is not reflective of any planned approach Marketing for the building is limited and ineffective Shore governance structure has led to poor management and lack of clearly defined responsibilities 1. EXECUTIVE SUMMARY Location Options for Arts/Cultural Center Given the community vision and demand for an arts/cultural/community center, and the assets and liabilities of the existing Shore building, we evaluated several options, each with their own pros and cons: No Arts/Cultural/Community Center in Euclid

Arts/Cultural/Community Center in other location/locations in Euclid: Pros: city saves cost of operating/repairing Shore; retain many of the quality of life benefits identified by the community Cons: no clear choice for a single location, and multiple locations risks losing the synergy and full impact of a single center; would still incur costs of dealing with existing Shore building; negative impact of empty site or building downtown Arts/Cultural/Community Center at Shore 8 Pros: city saves cost of operating/repairing Shore; city saves cost of operating a center like this Cons: ignores community consensus on need; would still incur costs of dealing with existing Shore building; potential impact on quality of life; negative impact of empty site or building downtown Pros: ability to leverage existing Shore assets; many Shore liabilities can be addressed with little or no financial investment; much of structure is already in place to implement strategic plan Cons: financial costs of operations and capital needs, building is too large Based on the community consensus, the pros and cons of each option, and the existing assets to be leveraged in the existing Shore building, this strategic plan describes a path forward under the third option 1. EXECUTIVE SUMMARY How Much Space Does Shore Need? The size of comparable facilities varies dramatically based on function, background, and history

Shore is most likely too big given the current building usage and given the usage contemplated under the strategic plan Partial demolition is costly, in part due to environmental considerations, and unlikely to merit payback in energy savings, particularly given more pressing capital needs Additional costs likely to rebuild restrooms since likely wings for demolition contain restrooms needed for remainder of building Some decrease in energy costs more than offset by demolition or construction costs Many costs are fixed regardless of size staff, boiler operators, etc. Recommendation: identify core rooms needed for plan, and turn down radiators, disconnect fuses/lights, and seal doors in non-critical rooms or rooms currently in poor condition 9 The auditorium, culinary school, gym, and 20-30 classrooms are probably sufficient to accomplish the short and medium term goals However, the options for reducing Shores size are costly with limited potential savings attached Solons arts-only facility has a local draw and a youth focus, and is bursting at the seams in 13,000 SF because that is the size of the historic building it moved in to Beck Center has a 3.5 acre campus and is a regional draw One of the best comparables, Emerson Center in Bozeman, is 55,000 SF and full If possible, concentrate unused rooms in specific areas of the building 1. EXECUTIVE SUMMARY Shore Financial Considerations

Several of Shores current liabilities tenant mix, marketing, and governance can be addressed with minimal financial investment Opposition to using the Shore building was generally based on the conclusion that the building costs the City too much to operate each year, or that the cost of the necessary capital and physical improvements to the building are too high Some of these conclusions are based on incomplete and/or faulty information Shores actual deficit over the past five years has been between $53,000 and $144,000 annually less than the $250,000 - $300,000 that many in the community engagement process assumed Shores capital needs are substantial, but less pressing than prior studies suggested 10 The strategic plan projects operating deficits in this same range over the next five years, with a deficit of approximately $10,000 or less by year five Roof and environmental needs are not immediate There are a variety of options to address the boilers and heating needs of the building in the short and medium term, and they can be made operational for winter 2009-10 for less than $30,000 Proper care and maintenance of the building and its systems have already improved building appearance and financial performance with minimal capital investment, and can continue to do so Necessary capital investment can be phased over the next 5-10 years and budgeted for in combination with potential funding sources 1. EXECUTIVE SUMMARY Capital Needs Assessment Prior studies compiled a laundry list of Shores capital needs, but were not paired with a common

understanding or plan for the building Full restoration of Shore would cost many millions but Shore does not need to be restored to nearly new condition to implement the strategic plan The five-year capital improvement plan for Shore is a phased approach with the goal of increasing energy efficiency and making improvements that will make the building more marketable The plan is conservative based on the challenges of fundraising for capital needs there are potential sources, but there is no silver bullet. Years three through five of the capital plan call for investments of $300,000 to $400,000 and focus on the boiler and windows Immediate next steps include Hiring a development director, initially part time, to pursue capital funding Launching a capital campaign for the building Reserving any operational savings for a capital reserve fund Potential funding sources for these capital improvements include: 11 The strategic plan does not contemplate converting the building to residential or require substantial interior renovation Shore can achieve its mission with more limited capital investment The five-year plan calls for the improvements that need to be done to operate the building according to the strategic plan, and is not a comprehensive list of all the nice to have improvements Qualified Energy Conservation Bonds, Clean Renewable Energy Bonds, Recovery Zone Economic Development Bonds, Build America Bonds all bond programs authorized and funded by stimulus dollars Capital campaign Historic preservation funds from the state and federal governments General operating revenue freed up by programming support from local foundations

1. EXECUTIVE SUMMARY Five Year Plan = 1 + 4 Year Plans The five-year strategic plan for Shore includes a one-year and a four-year plan Rationale for and goals of the One-Year Plan include: 12 Operational Finances: Shores budget surplus from the summer, which includes remaining unspent City funds already distributed to Shore and funds raised by the Shore board, will allow Shore to operate for an additional year with additional City operating investment of less than $100,000 Capital Needs: Shores immediate capital needs can also be met using less than $50,000 from the Citys capital budget while a funding plan can be put in place for implementation of the capital improvement plan Professional Management: a full year of professional management will permit more accurate budget forecasting, additional attention to low-hanging building appearance and maintenance issues, and consistent full-time attention paid to Shore Strategic Plan Implementation: key elements of the plan, including tenant recruitment and expansion, marketing, board and governance restructuring, and fundraising, can begin to be implemented, and key assumptions in the plan can undergo additional testing Subject to successful implementation of the One-Year Plan, a longer commitment to the building in the Four-Year Plan will include full implementation of all elements of the Strategic Plan 1. EXECUTIVE SUMMARY Mission Values Objectives VALUES We value: Broad community MISSION

To provide transformative, dynamic, and high quality arts, cultural, and lifelong learning experiences that build community, enhance quality of life, and strengthen Euclid and Northeast Ohio 13 participation Financial responsibility and accountability Quality programming Arts and cultural opportunities for youth Health and recreation Maximizing Shore for the greater community good Synergy between uses/tenants Showcasing Euclids assets Regional appeal and attraction Diversity of users, visitors, and tenants Building community partnerships in Euclid and beyond Utilization of the building and auditorium Safe, secure, and familyfriendly atmosphere OBJECTIVES Increase Base of Classes Expand Auditorium Uses Create a Marketing Program to Drive Traffic and Increase Awareness Create an After School Arts Enrichment Program Function, Use, and Tenant

Diversification Attract a greater percentage of Euclid residents to Shore Make Shore Cultural Centre a Reason to Stay in / Move to Euclid Reduce City of Euclid Funding Reduce Energy Usage by 15% Increase Revenue by 10% Each Year for Five Years Create Biennial Operating Plans Centralize Key Functions with Professional Shore Management Staff Reorganize Board Strengthen Board Fundraising Initiate Ongoing Grant Writing Efforts Increase Park Programming 1. EXECUTIVE SUMMARY Strategic Initiatives Mission critical short term initiatives for Shore include: Seek and bring additional sources of operating revenue to Shore tenants, room rental, classroom users Aggressively expand auditorium usage and base of class teachers Launch capital campaign Hire grant staff and pursue grant funding for programming and capital needs Reconfigure and restructure Shore Board Finalize a plan for replacing the boilers and secure funding to implement the plan Build partnerships with schools, recreation department, arts organizations and class teachers to create after school arts enrichment programs Carefully monitor building expenses through first winter under professional management and continue to identify and implement operational cost savings Revamp marketing efforts and re-launch Shore brand Begin phasing out transitional tenants in favor of core and complementary users 14 1. EXECUTIVE SUMMARY Existing Conditions: Annual Shore Deficit 15 1. EXECUTIVE SUMMARY

One Year Budget Summary Revenues Shore Cash Balance* 58,000 Expenses Personnel Rental Income 216,518 Utilities 135,600 Class and Room Rental 96,896 Management 36,000 Board Donations 16,800 General Fund Transfer 85,086 Total 473,300 Marketing + Administrative Repairs + Maintenance Contracted Services Total 18,300 57,200 18,570 473,300

* projected 12% 4% 12% 46% Leases 18% Class/Room Rental Board Donation 4% 20% 16 Personnel 43% Utilities Mgmt Marketing + Admin 8% Repairs + Maint. General Fund 4% 207,630 Contracted Services Cash Balance 29% 1. EXECUTIVE SUMMARY Five Year Financial Forecast:

New Day Transition = Year Three Year 1 Year 2 Year 3 Year 4 Year 5 Note Leases 216,518 227,344 147,458 174,087 200,715 New Day rooms re-rented @ 25%/ yr Class / Room Rental 96,896 116,275 139,530 167,436 200,924 20% annual increase Board Income 16,800 16,800

20,000 30,000 40,000 Per Plan objectives Grant Income - 10,000 25,000 35,000 40,000 Per Plan objectives 330,214 370,419 331,988 406,523 481,639 R&M - General 57,200 29,920 32,912 36,203 39,823 Increase 10%/yr; yr 1 incl. boiler repair

R&M - Contractors 18,570 20,427 22,470 24,717 27,188 Increase 10% per year Marketing 10,500 11,550 12,705 13,976 15,373 Increase 10% per year Management Fees 36,000 36,000 42,000 42,000 42,000 Increase in Year 3 Utilities 135,600

135,600 122,040 122,040 103,734 Decreased per Plan objectives Personnel 207,630 218,012 228,913 240,358 252,376 Increase 5% per year 7,800 8,580 9,438 10,382 11,420 Increase 10% per year TOTAL EXPENSE: 473,300 460,089 470,477 489,675 491,915

Net Income (143,086) (89,670) (138,489) (83,152) (10,276) Revenue TOTAL REVENUE: Expense Administrative 17 2. Background and Process Overview 18 2. BACKGROUND AND PROCESS OVERVIEW Background: Brief Shore History Built in 1918 as Shore High School front center portion only Major additions in 1922, 1925 (cafeteria), 1929 (auditorium), 1946, 1954, 1955 Closure as school, sale to City in 1986 Conversion to Shore Cultural Centre Managed originally by Economic/Community Development department Transferred to Recreation Department management in 1994

19 The Shore Board began to take on more responsibility for the building, including class programming and the Euclid Orchestra Approx. $400,000 capital investment in cafeteria (culinary school) and basement in 2005-2006 2. BACKGROUND AND PROCESS OVERVIEW Background: Shore Existing Conditions Occupancy/Utilization: Financial 25% of non-common area space in building is currently unused Majority of building is under-utilized most classroom and room rental tenants use rooms for less than 10 hours each week Mix of tenants on full time leases, classes, and room rentals Annual building deficit (past 5 yrs) between $53K and $144K, funded by city Capital Lack of attention to maintenance and capital issues over the past twenty years has resulted in serious capital needs Governance

Prior to Coral study, management officially by Recreation Department, but with substantial overlap and role played by Shore Board Inconsistent and ineffective management for much of recent history Political 20 Boiler is costly to operate and needs upgrade/replacement in short term Many other building systems (windows, electrical, etc.) need updating or replacing Aesthetically, building looks worn down Despite significant number of studies, no major capital investment has been made in over ten years towards improving building operational systems Uncertainty on future of building has hindered tenant retention and attraction, as well as investment in building 2. BACKGROUND AND PROCESS OVERVIEW RFP Process and Background January 2009: City of Euclid sends RFP to over 40 firms seeking proposals for Shore Cultural Centre February 2009: City receives three proposals 21 Proposal is broad and open to any ideas/proposals Spies Group: mixed-use redevelopment of Shore site anchored by new Euclid Public Library

Sandvick Architects: conversion of Shore building to housing (later withdrawn due to inability to find a development partner) Coral Management Company: professional management of Shore paired with strategic planning process March 2009: public presentations on two remaining proposals April 2009: City selects Coral Management Company to professionally manage and initiate a 120-day strategic planning process May 18, 2009: Coral Management Company begins management and strategic planning 2. BACKGROUND AND PROCESS OVERVIEW Strategic Plan: Conceptual Overview Information Gathering Community Engagement Best Practices Research Marketability Research Identify Funding Sources Evaluation of Building Systems 22 Analysis Current and Historical Financial Analysis Rent Roll Analysis Analysis of Research Conclusions Mission and Vision Appropriate Users 1,3,5 Year Objectives Strategic Initiatives Capital Improvement Plan 2. BACKGROUND AND PROCESS OVERVIEW Strategic Plan: Core Objectives

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 23 The Strategic Planning process was designed to answer these ten Core Objective questions What should be the mission, values, and objectives of Shore? What types of tenants and uses are appropriate for Shore, and at what lease terms/costs? Can Shore be operated more efficiently and with less City subsidy, and if so, how? Once there is consensus about the mission, values, and objectives of the building, can those objectives be accomplished using less than 100% of the Shore building? Similarly, is there a way to operate the Shore building based on these values and objectives in a way that the community determines to be financially viable? What are the projected revenues and costs associated with the recommended plan? What capital improvements are the most necessary in the short and intermediate term, can they be supported by projected revenues, and if not, how will they be funded? What type of governance structure will best help Shore achieve its mission and strategic objectives? What type of ownership will best help Shore achieve its mission and strategic objectives? How can Shore be more proactive in attracting arts and cultural users? 2. BACKGROUND AND PROCESS OVERVIEW Strategic Plan: Process 24 Strategic Planning Process Step Est. Timing Financial / Operational Due Diligence: review current and historical building financials, operations, capital expenditures, staffing, service contracts, and condition, as well as engineering reports, studies, and proposals previously commissioned. Within 30 days

Community Engagement: Meetings, focus groups, interviews, and/or surveys with relevant stakeholders: a.Shore board b.City officials, including the Mayor, Recreation Director, Service Director and Economic Development Director, and other representatives of the Shore Steering Committee c.Euclid city council members d.Current tenants and users of the Centre e.Current patrons of and visitors to the Centre f.Euclid school officials g.Euclid library officials h.Downtown business owners and operators i.Two open public meetings for City residents j.Potential/prospective tenants and users k.Regional business, arts & educational organizations. Within 60 days Best Practices Research: Research and evaluate similarly situated community cultural centers, looking at their planning protocols, marketing standards, operating guidelines, governance/ownership structure, funding sources, financial performance, and economic development potential to assess best practices. Within 60 days Outside Feedback: Based on preliminary results, consult with other design professionals or engineers as necessary to assess space needs and operating/engineering concerns Within 90 days Fundraising Sources: Based on preliminary results, identify sources of federal, state, county, and foundation funding to implement the Shore plan. Within 110 days Plan Draft: Author draft of Strategic Plan and review it with Steering Committee Within 110 days Community presentation: final presentation of Strategic Plan Within 120 days 3(a). Key Findings Market Research 25 3(a). MARKET RESEARCH

Key Findings Successful centers share several elements: 26 Partnerships: with other organizations, arts or otherwise Secure and Ample Funding Competent and Passionate Staff: who can build relationships with the community A diverse and dedicated board of directors Clear and focused programming Parents who are involved in the community and the centers Many centers operate successfully in restored converted school buildings Center governance structures vary from nonprofit to government run 3(a). MARKET RESEARCH Converting Old Schools into Community Arts Centers is Not Uncommon 27 Name Location School Constr. Yr. Ownership

Size Emerson Center for Arts & Culture Bozeman, MT 1918 Nonprofit 50,000 SF McKinley Arts & Cultural Center Reno, NV 1910 Govt Old School Square Delray Beach, FL 1913, 1925 Nonprofit Clifton Cultural Arts Center Cincinnati, OH 1906 Nonprofit Louisa Arts Center Louisa, VA 1907 Nonprofit Mary C. OKeefe Cultural Center of Arts and Education

Ocean Springs, MS 1927 Govt Metchosin Arts & Cultural Centre Metchosin, BC Govt Chesapeake Arts Center Brooklyn Park, MD Nonprofit Sullivan County Museum, Art and Cultural Center Hurleyville, NY 1912 Govt Noyes Cultural Arts Center Evanston, IL 1892 Govt n/a Maryland Hall for the Creative Arts Annapolis, MD 1932 Nonprofit

68,000 SF McGuffey Art Center Charlottesville, VA Nonprofit Chehalem Cultural Center Newberg, OR Govt Niagara Arts Cultural Center Niagara Falls, NY 1924 Nonprofit 166,000 SF Youngstown Cultural Arts Center Seattle, WA 1907 Nonprofit 25,000 SF public Jersey Shore Arts Center Ocean Grove, NJ Nonprofit 57,000 SF 20,600 SF 58,000 SF

3(a). MARKET RESEARCH Model Center: Emerson Center for the Arts and Culture (Bozeman, MT) Structure: 501(c)(3) nonprofit Building: 50,000 SF former elementary school, built in 1918, renovated in stages beginning in 1992 Programming: mix of performances, arts education, exhibits, and tenants 28 Building is entirely full: waitlist is 30 tenants long, and artists are even renting out old janitor closets. Rent ranges from $9 $13 / PSF Tenants include two cafes including full service restaurant; nine art studios; seven retail art galleries; dance, art therapy, and yoga studios; two graphic design firms; nonprofit offices including Trust for Public Land; music education and studios; four author/publishers; and photography Room rentals available for theater, weddings, meetings, and other uses Art exhibitions Arts education classes for over 1,000 school age children Staff of 11 full and part time, including: executive director, grants and membership coordinator, communications and marketing coordinator, visual arts coordinator, building manager, public facilities and office coordinator Revenue Sources:

Converted old gym with overhead track into ballroom, complete overhaul of rooms and building systems, extensive asbestos remediation Donations/Grants Government Support Memberships/Dues Tenant Lease Income Room Rentals Program Fees Misc Revenue REVENUE TOTAL Expenses: $675K $198K $15K $21K $265K $123K $30K $18K $670K 3(a). MARKET RESEARCH Emerson Center Key Lessons 29 Organization began as grassroots effort to preserve historic elementary building from development community raised $300,000 to purchase building Fundraising did not take off until the passionate grassroots artists on the board were phased out in favor of business people Addition of grant writing staff was also critical to success

Fifteen year ongoing effort of fundraising and phased capital improvements in the millions Minimal government support revenue is tenant and room rental driven Wide variety of nonprofit arts and cultural focused tenants Learn to walk before you can learn to run 3(a). MARKET RESEARCH Model Center: Solon Center for the Arts Case Study Solon Center for the Arts Operating structure: part of Solon government Building: 13,000 SF building (former City Hall) Incl. art gallery, 9 studios, ballet studio, 200 seat theater Recently ran out of space and rented commercial space at a strip center Programs No board, director reports to Mayor & Council All ages, focus on children Focus on theatre, art, dance & music Notable programs: Summer camps & memberships Memberships: National Guild of Cmty Schools of the Arts

Revenue Sources: 30 Tuition = $570,000 (58%) Government subsidy = $291,000 (30%) Philanthropy = $120,000 (12%) $981,000 Expenses: $891,000 Pros: more control & coordination among city programs Cons: government subsidy, more work for government, less community involvement, might be difficult for Euclid residents to cover high tuition costs 3(a). MARKET RESEARCH Model Center: Beck Center Case Study: Beck Center (Lakewood) Operating Structure: Independent, private nonprofit 22 member board Building: 3.5 acre campus, 2 stages, 2 galleries, 30 classrooms Programming Educates & entertains over 65,000 people annually All ages Focus on theatre, arts education & exhibitions Notable programs: Summer camps, ticket packages Memberships: Ohio Arts Council & Professional Alliance of Cleveland Theaters Revenue Sources:

31 Tuition = Philanthropy = Ticket sales = $2,300,000 $920,000 (40%) $759,000 (33%) $621,000 (27%) Pros: Board can increase awareness, involvement, donations and decrease reliance on government Cons: heavy on theater, reliant on ticket sales 3(a). MARKET RESEARCH Model Center: Manchester Bidwell Case Study: The Manchester Bidwell Corporation (Pittsburgh) Structure: nonprofit Building: 62,000 square foot facility Programming: Award winning Pittsburgh, PA center providing Career & Arts Education for Youths &

Adults Model for National Center for Arts & Technology Jazz program has won 4 Grammy Awards Teaches hundreds of adults and thousands of public school youths annually Course Offerings include: 32 Offers program replication assistance to qualified candidates Chemical Lab Technician Revenue Sources: Ceramics Digital Arts Design Arts Photography Music Instrument Lessons Music Production Culinary Arts Donations = $2.6M (27%) Horticulture Government Subsidy = $7.0M (73%) Office Technology $9.6M Medical Office Administration

Pharmacy Career training program funded via corporate donations (i.e., Heinz kitchen) Technician Expenses: $9.4M 3(a). MARKET RESEARCH Best Practices: Financials Category* Willoughby Direct Public Support: Indirect Public Support: Program m ing Revenue: Spe cial Events: Rental Revenue: Government Grants: Interes t / Dividends Earnings: Endow ment Earnings: Administrative Fees Revenue: Total Revenue: $ $ $ $ $ $ $ $ $ $ 400,906 30,108 746,279 148,685 81,010 1,396,802 Rental Expenses: Total Expenses: $

$ 1,604,134 Net Income: $ (207,332) Solon % 29% 2% 53% 11% 0% 0% 6% 0% 0% $ $ $ $ $ $ $ $ $ $ $ 30,000 570,000 50,000 291,000 941,000 $ $ 891,600 49,400

Feltre School % 3% 0% 61% 5% 0% 31% 0% 0% 0% $ $ $ $ $ $ $ $ $ $ % 17% 0% 64% 8% 0% 0% 0% 0% 0% Cincy $ 404,200 $ $ $ $ $ 162,392 $ $ $ $ 568,689

Manch. Bidw ell % 71% 0% 0% 0% 0% 29% 0% 0% 0% $ 30,240 109,981 14,526 173,086 $ $ $ $ $ $ $ $ $ $ 209,000 45,000 103,000 2,717,000 3,119,000 $ 418,355 $ $ 439,170 $ $ 3,334,000

(245,269) $ 129,519 $ Beck Center % 7% 0% 0% 0% 0% 0% 1% 3% 87% $ $ $ $ $ $ $ $ $ $ 626,135 1,294,621 32,200 355 1,961,525 (215,000) % 32% 0% 66% 0% 2% 0% 0% 0%

0% Ave rage $ 283,414 $ 5,018 $ 453,480 $ 35,535 $ 5,367 $ 75,565 $ 21,061 $ 17,167 $ 452,833 $ 1,360,017 Average Revenue % 27% 0% 41% 4% 0% 10% 1% 1% 15% $ $ 1,337,452 $ (97,736) *List not exhaustive

Primary source of revenue: programming (average of 41%) Direct public support also plays a key role; government less so Definitions 33 Direct Public Support: Contributions, gifts, grants, and bequests received directly from the public. Includes amounts received from individuals, trusts, corporations, estates, foundations, public charities, or raised by an outside professional fundraiser Indirect Public Support: Contributions received indirectly from the public (1) through solicitation campaigns conducted by federated fundraising agencies or organizations such as the United Way; (2) from a parent organization or another organization with the same parent; or (3) from a subordinate organization Programming Revenue: Fees and other monies received by an organization for services rendered. These services must relate directly to the primary purpose for which the organization received its tax-exempt status Source: Guidestar database, www.guidestar.org 3(a). MARKET RESEARCH Best Practices: Marketing A review of numerous community and arts centers generated a list of key marketing principles, many of which are applicable to Shore: Foster Genuine Connections to the Community The people you impact are your biggest advocates. Turn anonymous, passive agglomeration into active participation and you will soon find you have a community Build Political Will Helps secure sufficient resources Engage Key Collaborative Partners & Funders Pay Close Attention to the Audience grab their attention, give them what they want, fulfill their needs & they will be back for more Bring Art Outside while this may mean physically being outdoors, it also means you shouldnt limit your organization to the walls that surround it and dont wait for them to come to you. Reach out to the community, exhibit

and perform elsewhere to give people a sense of what they will find more of when they step inside your space Translate the Value of Your Offering to Your Target Market people see and value things differently. Make sure not to judge people and assume they wont be interested in your organization. Tailor your pitch to appeal to their values People 34 Go Because it Makes Them Feel Good not because its good for them. 3(a). MARKET RESEARCH Best Practices: Marketing Offer Diverse Programming diversity at all levels of your organization will naturally help create diverse programming. Diverse programming = broad ranging, more well-rounded participants Connect New Cultural Experiences to Older Ones this will help gradually expand exposure to art & culture. It shouldnt scare people away. Younger audiences have short attention-spans, more fluid and eclectic tastes so dont scare them away with too new experiences Caution: Dont Lose Your Audience When the Performance is Over maintain your relationship and online presence Market Through Families cater to each family member as each is a decision-maker. Appeal to each of their desires and you maximize your chances of participation Keep the Whole Family Happy For example, Disney films have been incredibly successful at making the whole family laugh at the same time but often they are not laughing at the same thing. This is called layering and can be very effective at keeping everyone happy Create Shared Family Experiences Think of what you do as a day care center, and thats what youll get. Keep the entire family involved and youll get a tightly-knit community center Develop 35 A Brand this is the sum total of the customers experience and will make or break your organization

3(a). MARKET RESEARCH Marketing Case Study: Solon Solon Center for the Arts: Marketing Budget: 12,700 (Down from 22,500 in 2008) Good model for making scarce resources have a major impact. 36 City Permit for Mailings as a part of the Solon Government, SCA is able to obtain permits in order to send out mass mailings for free Combined Newsletters SCA sends out three newsletters a year: Fall, winter, and spring/summer. Due to a decrease in their budget they chose to combine the spring and Summer mailings because the programming was similar Postcards postcards are used as a cheap way to keep people informed of the offerings at SCA Website SCAs website is independent of the City rather than being run through the local governments website as a department. The site is much more effective as an independent site. Additionally, they are able to edit the site frequently because of the simplicity involved with the webpage development software they use. Email Blasts SCA frequently sends out email alerts to the community whenever there is newsworthy information. It is free and effective. News Organization Relationships SCA has close ties to people in the news industry and works hard to maintain them. The benefits are impressive. They get 2 for 1 deals with the Solon newspaper for advertisements and also know TV personalities who frequently help them with advertising. Radio Broadcasting SCA works with WCLV radio to promote their programming for free Community TV Channel Solons community station, Solon Channel Access, offers free airtime to SCA to promote their classes and performances Club SCA a membership program that provides discounts on classes as well as to local restaurants. The fee is $100 annually.

Friends of SCA this nonprofit was started so that SCA would be able to accept grants that are restricted to 501(c)(3) organizations. Channeling funds through the nonprofit is also easier for reporting purposes. 3(a). MARKET RESEARCH Market Rent Assessment Downtown Euclid Rent Comparables Annual Rent PSF $9.72 $9.12 $8.82 $8.64 $8.51 Rent recommendations 37 Lakeshore Plaza- $10.00 PSF NNN (nets ~ $2.00 PSF) Carter Properties- $13.00 PSF NNN for small office space, $12.00 PSF NNN for small retail space and $8.00 PSF NNN for larger retail. (nets ~ $3.00 PSF) Spies- $14.00 PSF NNN. (nets ~ $3.00 PSF) Office spaces are between $6.00-12.00 gross. Older office units being leased in the $6.00 range

Between $8.00 and $10.00 gross. To achieve those rents each unit needs working air conditioner adequate heating directional signage or identification opportunities Many tenants will pay for limited additional improvements (painting, carpeting, etc.) $1.09 Elaine Green Love 'N' Care Daycare GED New Day WIC Culinary School $0.00 Hunger Center 3(a). MARKET RESEARCH Expanding Users Survey of existing tenants showed substantial interest in expanding class offerings

38 Piano, Dance, Karate, Yoga, Pottery, Stained Glass Current Fall semester planning has already yielded new classroom tenants Kitchen provides opportunity for additional classroom revenue Outreach to additional higher education institutions ongoing Upon completion and approval of plan, leasing efforts for full time tenants will begin in earnest 3(b). Key Findings Capital Needs 39 3(b). CAPITAL NEEDS Capital Needs Assessment Prior studies compiled a laundry list of Shores capital needs, but were not paired with a common understanding or plan for the building Full restoration of Shore would cost many millions but Shore does not need to be restored to nearly new condition to implement the strategic plan The five-year capital improvement plan for Shore is a phased approach with the goal of increasing energy efficiency and making improvements that will make the building more marketable The plan is conservative based on the challenges of fundraising for capital needs there are potential sources, but there is no silver bullet Years three through five of the capital plan call for investments of $300,000 to $400,000 and focus on the boiler and windows

Estimates are best estimates provided by the relevant contractors and professionals, and have been evaluated by Coral but not by independent engineering or architectural professionals Immediate next steps include The strategic plan does not contemplate converting the building to residential or require substantial interior renovation Shore can achieve its mission with more limited capital investment The five-year plan calls for the improvements that need to be done to operate the building according to the strategic plan, and is not a comprehensive list of all the nice to have improvements For example, no specific improvements are planned for the Auditorium the main floor and stage remains suitable for performances and has attracted numerous users. Improvements to this area are appropriate for a future plan after the implementation of the current plan Hiring a grants coordinator to pursue capital funding Launching a capital campaign for the building Reserving any operational savings for a capital reserve fund The full five year capital plan is included as Appendix A to the Strategic Plan, and details all options considered and recommended The cost of demolishing the Shore building is at least $1 million The Ohio School Facilities Commission uses an estimate of $4.50 / SF, not including environmental remediation, and this was the only demolition estimate provided by the City 40 Building plans show different sizes from the building, between 90,000 and 125,000 SF Partners Environmental estimates environmental remediation would be at least $500,000 3(b). CAPITAL NEEDS Priority of Capital Expenditures Heating/Cooling of Building

Windows Interior Aesthetic/Functional Improvements Life Safety Exterior Aesthetic/Functional Improvements Environmental Roof 41 Shore Building Map 3(b). CAPITAL NEEDS Locker Rooms, Auditorium Balcony, and Track are in need of substantial repair -however, without current or proposed uses, no need to invest capital Six classrooms need substantial work to be rentable with the number of rentable classrooms, this work is also not a short term need 42 3(b). CAPITAL NEEDS Room-by-Room Inventory Percentage of Rooms With Maintenance Needs 50.00% 45.00% 40.00% 43.24% 39.19% 35.00% 30.00% 25.68% 25.68% 25.00% 20.00%

17.57% 17.57% 15.00% 10.00% 5.00% 6.76% 2.70% 0.00% 43 Window % indicates maintenance issues with the glass only Data was extrapolated from a visual examination of each of the 74 rooms City Capital Expenditures Past Three Years Item Year Total Cafeteria/Culinary School Improvements 2007-2008 $493,976 Doty + Miller Study 2007 $35,000 Strategic Plan 2009 $42,000

TOTAL 44 3(b). CAPITAL NEEDS $570,976 Five Year Capital Improvement Plan 45 3(b). CAPITAL NEEDS 3(b). CAPITAL NEEDS Capital Needs: Heating/Cooling (Year 1) Contractors Consulted: Current boiler system reviewed by Kinkopf Bros., Inc., Boiler Specialists, Inc., and Copley Co. Heating & Cooling Roberts Mechanical also provided an updated quote for used boiler equipment, and Denk & Associates provided a drawing and ideas for heating individual rooms Goal of all contractor reviews was in accordance with the 1- and 4-year capital plan: to run the current system through the winter of 2009/2010, while finding efficiencies in the current equipment both at the plant and throughout the building Existing Conditions: Upon state interior inspection by Hartford Insurance, the right main boiler is tight, with controls that appear to have been updated to more modern conditions. The inspection determined that the right boiler would operate properly for another season with approximately $30,000 worth of repair work. The left boiler, based on the number of repairs needed, would not be cost-effective to operate. A portable boiler option could be utilized if the right boiler were to fail for any reason until repairs could be done. Year One Options Repair Right Boiler: ~$30,000 (Boiler Specialists, Inc. or Dalton Combustion Systems) Rental Boiler: A Rental Boiler could be hooked into the building and run from a semi trailer outside. According to

each contractor, the capacity of these portable boilers should be enough to heat the building, and would be serviced by the company throughout the season. Pros: Allows current boilers to be non-operational, meaning no repairs would need to be done this year Rental boilers fall under Ohio Specials, which means that a licensed boiler operator need not be present at all. This would equate to an approximate $40,000 savings in personnel costs over the winter. Contractor would take responsibility for operation of the system Cons: 46 Up-front cost of $80,000 to $100,000 is more than budgeted for repairs Year One Recommendation: Repair Right Boiler 3(b). CAPITAL NEEDS Capital Needs: Heating/Cooling (Years 2+) Options Considered Option #1: Install New Boilers Option #2: Install Used Boilers Estimated $2,010,000 (prior estimate from Doty + Miller study, $1.2 - $1.5 million) Recommended Option: individual heating/cooling units in each room Total Cost: $880,000

$80,000 to run gas lines from the basement; $650,000, including labor, for units. With adding condensate drains and any electrical and drywall work (to cover each duct) Total: $730,000.00; add engineering and contingency of $150,000 Pros: Individual units could be purchased one at a time, by zone, as classrooms are utilized Each unit would be able to be individually controlled, and turned off within the rooms that were not being utilized Abandons the boiler system and piping Individual heating units would be purchased with coils attached in anticipation of making them cooling units as well Cons: 47 Estimated $880,000 Option #5: Install rooftop units on building and run ductwork and electrical for both heating and cooling Estimated $80,000 - $100,000 per season, saves money on boiler operators Option #4: Abandon Boilers, and connect gas line directly to controllable individual furnace heating/cooling units in each room Estimated $325,000, includes any asbestos removal and repair of fire brick Option #3: Utilize Rental Boilers during each heating season

Estimated $400,000, does not include electrical or cooling Cost 3(b). CAPITAL NEEDS Capital Needs: Windows Contractors Consulted: Euclid Glass, Elvie Corporation, Jera Corporation, and Scheutzow Builders all evaluated the windows and prepared proposals Existing Conditions: many windows have broken glass or rotting frames, most have peeling paint. Year 1-2 Options In years one and two, repair all necessary broken and damaged windows; repair rotting wood frames; seal gaps; do a test with thermal drapes and/or window plastic to close at night to keep the heat in and the cold out *It is anticipated that there will be ice buildup on some exterior windows, and the number below DOES NOT include anticipated expense associated with this condition Cost: $3,750.00 each year (estimate of 25 windows at $150.00 per window per year) Year 3+ Options Window Restoration: Take out and rework window panels; strip, prime, and repaint wooden window; repair or replace chains, ropes, rollers and weights; fix top panel; replace glass with insulated glass; replace or repair defective wood Cost: $1,000 / window. Alternative option is to replace basement windows with glass block, which is less expensive Total Replacement: new energy efficient windows, $975,000 - $1,096,000

Recommended Options 48 Total cost: $314,000 - $470,000 Phase window restoration over a series of years 3(b). CAPITAL NEEDS Capital Needs: Environmental Contractors Consulted: Partners Environmental surveyed the building to render their expert opinion on the existence and condition of asbestos. Existing Conditions: Asbestos: There appears to have been a previous survey and some repair and labeling for the asbestos in the building. However, no documentation was provided and those that they spoke to are not aware of any reports. Regardless, there needs to be a current survey and formal Operations and Maintenance (O&M) Plan, particularly in light of a portion of the building being used for a school, which is subject to State and Federal Asbestos regulations. There is a lot of asbestos in the building, which would need to be dealt with if a major renovation or demolition occurred (probably at least a $500,000 abatement project). Most that we saw was in good condition and could remain, if properly managed. Lead Paint: the exterior surface of most windows appeared in poor condition. It is possible (likely) that the paint contains elevated levels of lead. That may be an incremental cost when having them repainted. The paint appeared in good condition on most interior surfaces we saw. In the day care and school portions of the building, lead based paint management should be considered (i.e., surveys, maintenance, etc.). Recommended Steps: Year 1:

Do not attempt to tear down any of the individual ceiling tiles or take up any of the existing flooring. Rather, as rooms become occupied, re-attach tiles securely, bleach them, and paint the ceiling all which can be done by in-house staff Any contractor performing any painting work on the interior of the building will be required to take precautions when scraping and sanding surfaces Year 2+ Recommendation is to have a survey done and an Operating & Maintenance Plan (O&M Plan). 49 Cost of Survey: $10,000 to $15,000 Cost of Preparation of O&M Plan (estimate does not include and abatement, labeling or training that may be needed): $5,000 to $10,000 3(b). CAPITAL NEEDS Capital Needs: Life Safety Contractors Consulted: National Firesafety Systems Existing Conditions: an updated alarm system was installed at Shore four years ago and designed to meet existing guidelines. Natl Firesafety Systems stated that the current Fire Inspector for the City of Euclid has final say in how extensive the system should be, and currently the ADA guidelines for horn strobes and smoke detectors are in place. Drawings of the system exist and were requested from the City but not yet provided. Options: Research of the life safety category has not triggered any need for major expenditures in this category Recommended Steps: $50,000 per year is planned for years 3, 4, and 5 as a contingency 50 3(b). CAPITAL NEEDS Capital Needs: Roof Contractor Consulted: Reader Roofing

Existing Conditions: Options/Costs: 51 In 1990, a new roof was installed at Shore. In a letter written in August, 2000 by Bob DeMinico, Director, Parks & Recreation for the City of Euclid to City Council, a 1999 roof study by Tremco, Inc. was cited. In Tremcos study, the roof system appeared to be in good condition, with the recommendation of further infra-red study. The infra-red and core study were performed in August, 2000, with recommendations for drain work and corrective repairs totaling $100,000.00 The Roof Description of Need from the 2007 Doty & Miller Report was that minimal patching and repair work needed to be done to the roof and parapet wall areas. The total estimate for roof replacement in this report was $700,000 - $850,000. Upon inspection by Reader Roofing on June 12, 2009, it was the opinion of the contractor that the roof of Shore Cultural Centre is in good condition. There are some missing caps and some parging on the parapet wall need to be repaired. It is the opinion of Reader Roofing that the existing roof will last at least another 10-15 years. Roof is in very good condition with no major capital needs in next five years Remaining lifespan 15-20 years Recommended Steps: budget for patching and other needed repairs year by year. It is our recommendation that roof replacement not be a part of the five-year capital plan, but rather that repair costs be budgeted as operating expenses throughout five years 3(b). CAPITAL NEEDS Additional Capital Needs Several other smaller capital improvement items are included in the five year capital plan Restroom Remodel

Lighting Upgrade The rear parking lot is in need of resurfacing. An estimate has been provided of $69,250 to resurface and re-stripe the rear lot. The front parking lot was found to be solid, and two coats of sealant and re-striping have been recommended for the cost of $5,900.00. Total Capital cost for Parking Lot Renovation: $75,150.00, with all of the work planned in Year 3 Development Director 52 Numerous ballasts need to be replaced, and upgraded fixtures in the common areas will be more energy-efficient. An estimate of $29,000.00 was provided, spread over years 2 5. Parking Lot Renovation Restrooms remodels should be planned one at a time, starting in year 2 with $30,000, and continuing on at $15,000 per year, for a total of $75,000 In order to fund and execute any portion of this 5-Year Capital Plan, it will be necessary to add a part-time staff position of Development Director. This cost is estimated at $25,000.00 in Year 1, and $50,000 per year for years 2 - 5, with a total of $225,000. 3(b). CAPITAL NEEDS Building Studies and CapEx: Summary of Existing Studies Prior studies identified a full laundry list of potential improvements Building Component

Boiler Electrical Project Option Estimated Cost Average Est. Cost Boiler Insulation $2,4621 $2,462 Replace missing or thinning insulation Boiler Repair $20,000 $30,0002 $25,000 Repair adds approx. 1 year of useful life. Intermediate Heating System Repair $110,000 $250,0003 $180,000 Upper end includes repair of leaks in the piping, automating the controls to increase efficiency and repairing the pumps. New HVAC System $1.24m - 1.5m4 $1,370,000 This option abandons old boilers and also introduces AC into building. Upgrade Existing System

$200,000 - $1m5 $600,000 Work ranges from updating existing wiring to installing new electrical system for HVAC unit. New Sprinkler System $300,0006 $458,0007 $379,000 System helps bring building into Code Fire Safety Upgrades $178,000 $290,0008 $234,000 Eliminates dead end corridors and encloses fire stairways Lighting Changeover $84,9889 $84,988 Utilize more cost and energy efficient technology. Life Safety Lighting 53 Comment / Description of Need (1) Go Sustainable Energy, Technical Reference Manual, pg 17, section 3.3, October 2007 (2) Doty and Miller Architects, Facility Assessment, page 9, January 2007 (3) Doty and Miller Architects, Facility Assessment, pages 9-10, January 2007 (4) Doty and Miller Architects, Facility Assessment, page 9, January 2007 (5) Doty and Miller Architects, Facility Assessment, pages 9-10, January 2007 (6) Doty and Miller Architects, Facility Assessment, page 10, January 2007 (7) Quality Management Inc., Shore Cultural Centre Proposal Terms, Anticipated Additional Future Improvements #5,

August 2001 (8) Doty and Miller Architects, Facility Assessment, page 9, January 2007 (9) Go Sustainable Energy, Technical Reference Manual, pgs 54-62, section 5, October 2007 3(b). CAPITAL NEEDS Building Studies and CapEx: Summary of Existing Studies Prior studies identified a full laundry list of potential improvements Building Component Project Option Estimated Cost Average Est. Cost Comment / Description of Need Sealing $48,4001 $135,0002 $91,700 Provide weather tight seal and replace/repair missing and broken panes. Total Replacement $750,000 $950,0003 $850,000 Abandon old windows and update with new technology. Replacement/Repair $700,000 $850,0004 $775,000 Either replace roof or repair portions of roof, parapet and flashings Partial (Theatre)

$18,0005 $18,000 Extends roof life over theatre 5-7 years. Cosmetic Maintenance/ Repair $310,000 $540,0006 $425,000 Repair plaster, missing tiles, missing trim and base molding. Repair water damage and building wear and tear. Upgrade Public Space $670,000 $1.25m7 $962,500 Repair existing finishes, signage, ceilings and doors. Includes repair work on theatre. Upgrade Tenant Space $100,000 $375,0008 $237,500 Repair or upgrade lighting, finishes, as well as phone, cable/data capabilities. Remove Asbestos Containing Material $396,9989 $396,998 Estimates are for total abatement of ACM Windows

Roof Building Aesthetics Asbestos 54 (1) Quality Management Inc., Shore Cultural Centre Proposal Terms, Exterior #2, August 2001 (2) Honeywell Inc., Energy Performance Contracting Feasibility Study, page 8, May 2002 (3) Doty and Miller Architects, Facility Assessment, page 10, January 2007 (4) Quality Management Inc., Shore Cultural Centre Proposal Terms, Theater Area #13, August 2001 (5) Quality Management Inc., Shore Cultural Centre Proposal Terms, Theater Area, August 2001 (6) Doty and Miller Architects, Facility Assessment, pages 4 & 10, January 2007 (7) Doty and Miller Architects, Facility Assessment, pages 10, January 2007 (8) Lawhon & Associates, Inc., Shore Cultural Centre Air Sampling and Analysis Documentation (9) City of Euclid, Parks & Recreation, Inter Office Memorandum, Bob DeMinico, August 1998 3(c). Key Findings Funding Opportunities 55 3(c). FUNDING OPPORTUNITIES Funding Opportunities - Summary There are no silver bullet funding opportunities currently available there are some promising leads, but all will require additional eligibility research, discussions with sources, and application The most promising federal funding opportunities are federal stimulus subsidies for local bond issuance that can be used for energy efficiency and renewable energy capital improvements as well as job training and educational programs 56

The downside of these programs is that they would still require bonds to be repaid from some source State and federal incentives are available for historic preservation activities, but the majority of the incentives are tax credits which may require a different ownership structure for Shore Program support funds are available from the county for the arts and from the county and federal government for creative economic development and job retraining initiatives Any opportunities will require additional legwork in research and applications from a staff member (development director) 3(c). FUNDING OPPORTUNITIES Federal Funding Opportunities Capital Needs The federal stimulus created and funded several bond programs offering favorable bond financing that may be useful for Shore 57 Qualified Energy Conservation Bonds: qualified tax credit bonds can be used for funding municipal solar and energy efficiency projects, including capital expenditures that reduce energy consumption on publicly-owned buildings by at least 20% Clean Renewable Energy Bonds: may be used to finance renewable energy projects and are issued -- theoretically -- with a 0% interest rate. The borrower pays back only the principal of the bond, and the bondholder receives federal tax credits in lieu of the traditional bond interest. Recovery Zone Economic Development Bonds: may be issued for purposes of promoting development or other economic activity, including public infrastructure and construction of public facilities or job training and educational facilities. Taxable bonds, but the federal government would reimburse the municipality for 45% of the interest paid, making the true cost of the interest paid lower than that paid on tax-exempt bonds. Build America Bonds: state and local government issued taxable bonds to finance any capital expenditures for which tax-exempt governmental bonds could be issued, with a direct federal subsidy payment for a portion of their borrowing costs equal to 35 percent of the total coupon interest. This new program is intended to assist state and local

governments in financing capital projects at lower borrowing costs and to stimulate the economy and create jobs 3(c). FUNDING OPPORTUNITIES Qualified Energy Conservation Bonds 58 Federal Department: The U.S. Internal Revenue Service Amount Available: $3.2 billion Program Description: The Energy Improvement and Extension Act of 2008, enacted in October 2008, authorized the issuance of Qualified Energy Conservation Bonds (QECBs) that may be used by state, local and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, and in this respect are similar to new Clean Renewable Energy Bonds or CREBs. The ARRA authorized local communities to use some or all of their QECB allotment for funding municipal solar and energy efficiency projects, including capital expenditures that reduce energy consumption on publicly-owned buildings by at least 20%, and implementing green community programs. Such green community programs could include many opportunities for cities, which could issue QECBs to fund loan, rebate and/or grant programs--including issuing QECBs to finance the property tax assessment model. Note that the bonds would need to be repaid, for example by incorporating the servicing costs into the terms of the loan program itself. QECBs could also be used by municipal utilities to fund community solar programs, or for public education campaigns to promote energy efficiency. Again, the source of bond repayment would need to be identified. Finally, up to 30% of the QECB allocation can be used for private activity bonds. Eligibility Requirements: Local Government, State Government, Tribal Government More Information: http://www.dsireusa.org/incentives/incentive.cfm? Incentive_Code=US51F&re=1&ee=1, http://www.irs.gov/pub/irs-drop/n-09-29.pdf 3(c). FUNDING OPPORTUNITIES Clean Renewable Energy Bonds 59

Federal Department: U.S. Treasury Amount Available: OH allocation $422 million, Cuyahoga County $42 million Program Description: RZEDBs may be issued for purposes of promoting development or other economic activity, including public infrastructure and construction of public facilities or job training and educational facilities, in an area that has been designated by the county/large municipality as a recovery zone. RZEDBs are taxable bonds (the interest earned by the holders of the bonds is subject to taxation and the rate of interest paid by the county/large municipality would presumably be higher than that on tax-exempt bonds). However, the federal government would reimburse the county/large municipality for 45% of the interest paid; thus making the true cost of the interest paid lower than that paid on tax-exempt bonds. More Information: http://www.ustreas.gov/press/releases/tg168.htm 3(c). FUNDING OPPORTUNITIES Recovery Zone Economic Development Bonds 60 Federal Department: The U.S. Internal Revenue Service Amount Available: $2.4 billion Program Description: Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. CREBs are issued -- theoretically -- with a 0% interest rate.* The borrower pays back only the principal of the bond, and the bondholder receives federal tax credits in lieu of the traditional bond interest. Application Dates: Application date was August 4, 2009 Eligibility Requirements: Local Government, State Government, Tribal Government, Municipal Utility, Rural Electric Cooperative

More Information: http://www.dsireusa.org/incentives/incentive.cfm? Incentive_Code=US45F&re=1&ee=0, http://www.irs.gov/irb/2007-14_IRB/ar17.html Notes: funding has been increased several times, watch for reopening 3(c). FUNDING OPPORTUNITIES Build America Bonds 61 Federal Department: U.S. Treasury Amount Available: 35% payment to local government on borrowing costs Program Description: The American Recovery and Reinvestment Act of 2009 creates the new Build America Bond program, which authorizes state and local governments to issue Build America Bonds as taxable bonds in 2009 and 2010 to finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. State and local governments receive a direct federal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to 35 percent of the total coupon interest paid to investors. This new program is intended to assist state and local governments in financing capital projects at lower borrowing costs and to stimulate the economy and create jobs. More information: http://www.irs.gov/newsroom/article/0,,id=206037,00.html, http://www.irs.gov/pub/irs-drop/n-09-26.pdf 3(c). FUNDING OPPORTUNITIES State Funding Opportunities Capital Needs 62 Ohio Advanced Energy Fund: can be used to implement renewable energy projects limited to solar electric, wind electric, and solar thermal systems for Institutional and Governmental entities in Ohio. Grants are $150K-$250K, up to 40% or 50% of

the cost of a solar or wind project. Historic Preservation Certified Local Government Grants: can be used for predevelopment of historic rehabilitation Ohio Historic Preservation Tax Credit: refundable tax credit of 25% of the qualified rehabilitation expenditures (including some soft costs) on eligible projects. Can be paired with federal 20% tax credits Small planning grants are also available nationally 3(c). FUNDING OPPORTUNITIES Ohio Historic Preservation Certified Local Government Grants Awarded By: The Ohio Historic Preservation Office through the U.S. Department of the Interior's Historic Preservation Fund Amount Available: Annual statewide grants are approximately $90,000. Federal Fiscal Year 2009 grants will be awarded on a 70/30 matching basis. The grant may constitute up to 70% of the project cost; the applicant must provide the remaining 30% through any combination of cash, in-kind and donated services and materials. With the exception of Community Development Block Grant (CDBG) funds, federal funds cannot be used to meet the matching share requirement of Certified Local Government grants. Payment of the Certified Local Government grant is made on a reimbursement basis. Purpose: To carry out a wide range of historic preservation activities Application Dates: March 2010, Projects to run from May - September Eligibility Requirements: Cities and villages in Ohio that have attained Certified Local Government status are eligible to apply for assistance for their local preservation projects. Historic preservation planning, surveys of historic resources, nominations of properties and districts to the National Register of Historic Places or local registers, predevelopment and rehabilitation of properties listed on the National Register of Historic Places, and public education programs on historic preservation-related topics. More Information: 63 The Ohio Historic Preservation Office: http://www.ohiohistory.org/resource/histpres/

Certified Local Government Grant Application Package: http://www.ohiohistory.org/resource/histpres/ docs/clg/clg-13.pdf 3(c). FUNDING OPPORTUNITIES Ohio Historic Preservation Tax Credit 64 Awarded By: The State of Ohio Amount Available: Round 3 - $17.5 million; Round 4 - $24.2 million Purpose: Create jobs, spur development, and to restore and preserve historic structures Application Dates: Round 3: July 1, 2009 to September 30, 2009. Round 4: January 1, 2010 to March 31, 2010. First come, first served Amount of Credit: Refundable tax credit of 25% of the qualified rehabilitation expenditures (including some soft costs) on eligible projects toward intangibles, corporation franchise, or income tax. $5 million limit Eligibility Requirements: Listed individually on the National Register of Historic Places, individually landmarked by a Certified Local Government (CLG) (see link to the right), included in and verified as being of significance to a National Register Historic District, included in district designated by a CLG, or included in a district certified by the National Park Service More Information: http://www.development.ohio.gov/UD/OHPTC/ 3(c). FUNDING OPPORTUNITIES Ohio Advanced Energy Fund

65 Ohio Advanced Energy Fund Awarded By: The State of Ohio Amount Available: $7 million available Purpose: implement renewable energy projects limited to solar electric, wind electric, and solar thermal systems for Commercial, Industrial, Institutional and Governmental entities in Ohio Application Dates: Rolling from May 2008 - first come, first served Amount of Grant: $150-$200K, up to 50% of solar electric and 40% of wind electric projects More Information: http://www.development.ohio.gov/cms/uploadedfiles/CDD/OEE/N OFA.pdf 3(c). FUNDING OPPORTUNITIES National Foundation Historic Preservation 66 National Trust Preservation Fund Awarded By: National Trust for Historic Preservation Amount Available: Generally up to $5,000 (matching grant) Purpose: to assist nonprofit organizations and public agencies by funding preservation planning and educational efforts. Matching grant funds may be used to obtain professional expertise in areas such as architecture, archeology, engineering, preservation planning, land-use planning, fund raising, organizational development and

law as well as to provide preservation education activities to educate the public. Application Dates: 3 rounds annually: deadlines are February 1, June 1, and October 1 Eligibility Requirements: Nonprofit organizations and government agencies More Information: National Trust for Historic Preservation: http://www.preservationnation.org/resources/find-funding/grants/ Guidelines & Application: http://www.preservationnation.org/resources/find-funding/grants/pf/National-TrustPreservation-Funds-Application.doc Johanna Favrot Fund for Historic Preservation Awarded By: National Trust for Historic Preservation Amount Available: Generally from $2,500 to $10,000 Purpose: The fund aims to save historic environments in order to foster an appreciation for our nations diverse cultural heritage and to preserve and revitalize the livability of our nations communities. Application Dates: February 1 Eligibility Requirements: Nonprofit organizations and government agencies More Information: National Trust for Historic Preservation: http://www.preservationnation.org/resources/find-funding/grants/ Guidelines & Application: http://www.preservationnation.org/resources/find-funding/grants/pf/Johanna-FavrotFund-Application.doc 3(c). FUNDING OPPORTUNITIES Program Development Funding Opportunities 67 Energy Training Partnership Grants: federal stimulus program for projects that, through strategic partnerships, provide training and placement services in the energy efficiency and renewable energy industries Cuyahoga County Arts + Culture Program Support: supports county based arts or cultural programs or activities that bring high artistic quality to the public and actively promote participation in and access to arts or cultural activities. Open to nonprofit arts or cultural organizations that have a primary mission of creating, producing, performing or exhibiting in areas of the arts or cultural heritage for the benefit of the general public Cuyahoga County Innovation Zone: new program to support businessfriendly environments comprised of a network of private industry, nonprofit, and institutional organizations focused on a unique commercial market opportunity of the regional economy (some examples are consumer product industrial design, electronic imagining, and paints and coatings). The initiative encourages businesses, researchers,

universities, entrepreneurs and community leaders to establish a strategic place-based economic development plan. 3(c). FUNDING OPPORTUNITIES Cuyahoga Arts + Culture Program Support 68 Awarded By: Cuyahoga County Arts + Culture (county arts tax funding) Amount Available: maximum request $50,000 Purpose: supports Cuyahoga County based arts or cultural programs or activities that bring high artistic quality to the public and actively promote participation in and access to arts or cultural activities. CAC's PS grant program is open to Cuyahoga Countybased nonprofit arts or cultural organizations that have a primary mission of creating, producing, performing or exhibiting in areas of the arts or cultural heritage for the benefit of the general public. Cuyahoga County-based Units of Government and other nonprofit organizations may be eligible for this program if they consistently create, produce, perform or exhibit in the areas of the arts or cultural heritage for the benefit of the general public. Application Dates: awarded annually and the grant period is July 1 June 30 More Information: http://www.cuyahogaartsandculture.org/cuyahoga.arts.and.culture.project.support.php 3(c). FUNDING OPPORTUNITIES Cuyahoga County Innovation Zone 69 Awarded By: Cuyahoga County Dept of Economic Development Amount Available: three-tier grant program of up to over $500,000 Purpose: The Cuyahoga Innovation Zones (CIZ) is a new program to promote collaboration and spur economic development. An innovation zone is a business-friendly environment comprised of a network of private industry, nonprofit, and institutional organizations focused on a unique commercial market opportunity of the regional economy (some examples are consumer product industrial design, electronic imagining, and paints and coatings). The initiative

encourages businesses, researchers, universities, entrepreneurs and community leaders to establish a strategic place-based economic development plan. The plan lays out how partnering organizations will work together to promote a commercially viable market opportunity and create a zone of economic activity with critical mass. A minimum of two anchor partners are required to establish an innovation zone. The anchor partnership must consist of at least one nonprofit economic development organization and one or more organizations (private industry, college or university, municipality, or a leading research and development organization) with unique capacity to assess and understand the underlying market focus of the Zone. More Information: http://development.cuyahogacounty.us/en-US/cuyahogainnovation-zones.aspx 3(d). Key Findings Community Engagement 70 3(d). COMMUNITY ENGAGEMENT Community Engagement Overview Subject Mayor Cervenik Type In person interview Date 5/21 Participants Mayor Cervenik; Frank Pietravoia Meeting Record Interview Guide + Notes Comment City Staff In person interview 5/27 Kathy Will; Mac Stephens Interview Guide + Notes

Also invited: Frank Pietravoia, Service Director Shore Board Focus Group 6/3 ~ 12 board members Interview Guide + Notes City Council Individual in person interviews Week of 6/15 Interview Guide + Notes No response from Gruber; Van Ho did not show up for scheduled mtg Shore Tenants Questionnaire Questionnaire Results Shore Visitors/Patrons Focus Group + PreQuestionnaire Early June 6/17 Holzheimer-Gail, Minarik, Jones, Langman, Scarniench, Wojtila, ONeill

11 respondents 29 participants Shore Community Meeting I Shore Community Meeting II Library Downtown Businesses Shore Tenants Focus Group + PreQuestionnaire 6/20 22 participants Focus Group + PreQuestionnaire 6/22 41 participants In person interview Questionnaires 6/17 Mid-June Donna Perdzock 8 downtown businesses Moderators Guide, Interview Notes, Questionnaire Responses Moderators Guide, Interview Notes, Questionnaire Responses Moderators Guide, Interview Notes, Questionnaire Responses Interview Guide + Notes Questionnaire Results

Submitted to all tenants / teachers Evening mtg; advertised by signs at Shore and given to tenants Follow-up interviews 6/29 Downtown Businesses Phone and In-Person interviews Late June/ Early July New Day Academy; Bounce-Around; Watercolor; Love-N-Care Dave Carlson; Miles Carter; Al Saluan; Fred Siegal; Dan Saltzman Schools In-Person interview 7/7 Joff Jones 71 Interview Guide + Notes Interview Guide + Notes Afternoon mtg; advertised via signs at Shore + City Hall, council announcement, Sun, cmty email Evening mtg; advertised via signs at Shore + City Hall, council announcement, Sun, cmty email Targeted door-to-door visits to

downtown retail businesses 3(d). COMMUNITY ENGAGEMENT Community Engagement: Key Findings Near universal agreement on community needs that could be met by Shore: General agreement, with some exceptions: 72 the building has not been well managed or cared for the building and its programming has not been well marketed the Board needs restructuring and a more clearly and narrowly defined role Downtown businesses report negligible, if any, positive impact from Shore currently Diversity of community participation in the process was lacking and largely limited to pro-Shore advocates Narrowest articulation: arts classes and performances only Broadest articulation: community center with arts, culture, education, social services, and other complementary uses everything but housing, library, and general retail Respondents who use Shore the most tenants, Board members, community users have the most affinity for the building, but all agree it needs investment

Near universal agreement that There is benefit in having these community needs met in one location (community center) The city should participate financially in achieving these community needs, at least in the short- to mid-term Most respondents spoke of some vision related to arts + culture the biggest variable was the scope of that vision Arts and cultural education and programming Activities for youth after school, summer, educational and recreational Attendance levels and participation at community meetings was not unexpected it is difficult to engage a broad crosssection of the community on an issue that is not central to them As a result, most community engagement results are taken at face value for what they are feedback from Shores main proponents/users 3(d). COMMUNITY ENGAGEMENT Summary of Key Constituency: Elected Officials and City Staff Mayor Cervenik: prefers that an arts/cultural centered vision for Shore exist in a different or new building or buildings City Recreation Dept: sees potential in Shore for City Rec Dept / Programs Rec Dept does not have enough space for its programs but Shore would need some upgrades (incl. two usable gyms) + building is too large Shore does not fully engage the community particular opportunity for youth

History of shifting governance, management, funding, and oversight have left the building in poor shape physically City Council: generally supports an arts/cultural vision for Shore views are mixed on how narrow or wide of a vision, and on the building 73 Current tenant mix not tightly aligned with arts + culture No attachment to building it is a financial drain Could see subsidizing Shore $100K-$125K annually if financially stable and with tenants that support the proper vision Several members seem most committed to keeping all or part of the building operating Other members are open to other possibilities on the physical building 3(d). COMMUNITY ENGAGEMENT Summary of Key Constituency: City Council Scarniench The Minarik building is too big Definite need for a focused arts/cultural center in a smaller building take down the additions (except for auditorium), house it in the original building fix up the auditorium No one has ever DONE anything about Shore too much talk, not enough action No need for a board, it is a waste of time, and they are their own worst enemies City should put in capital, but the building should pay its own bills Langman vision, with clustered areas in building need not be static it should evolve, and keeping tenants that arent part of long term vision for today to stabilize the building is ok Disbursing these uses outside the building would have a negative impact reduces economic impact and synergy like ashes from a

fire that die when spread out Board must be restructured and refocused around fundraising, advocacy, and marketing - NOT management or programming Multi-programmatic Holzheimer-Gail Plan Wojtila arts/cultural center vision, plus ancillary uses need building to be self-sufficient No attachment to physical building, open to possibilities Narrower a cultural center / community center vision, but does not think it should be in the current building Would rather take the subsidy and capital dollars, land bank the existing building, and spend that money to build a new green building Current users are just there to fill space doesnt see for profit users as cultural Supports 74

Broad vision community hub - tenants paying fair share City should pass off management or ownership and pay to subsidize operations if for vision long term Hangup is the fixing of physical building city cant spend amount needed to fix it up + it may not be the citys priority even then if we had a capital plan spread over time, might be a different story Hard to replicate historic nature of building Giving up sends a bad message large impact on downtown Jones Doesnt ONeill Vision for building as a great leveler a place where all ages / incomes / races can come to take classes together and unite Euclid as a key to attracting a vibrant middle class Shore is a comfortable old house no one cares if it is beat up a little bit City cannot manage it to its full potential The board gets nothing done it has no focus and is dysfunctional should be reorganized for fundraising, marketing City should support it the senior center gets $600-$700K each year for personnel Ongoing subtle attack on Shore has been going on for years Building is close to potential vision with current users could just add some additional users (greenhouse) Big problem is physical appearance of the building it is embarrassing to bring visitors Users could succeed if spread across town, and that might add greater accessibility Building should not be subsidized by the city would like to see the city get out entirely 3(d). COMMUNITY ENGAGEMENT Summary of Key Constituency: Downtown Businesses Survey Respondents: Lakeshore Coffeehouse; Lakeshore Cinema; Burlington

Coat Factory; Dave's Supermarket; Just a Dollar; National City Bank; Walgreens; CVS Pharmacy General consensus that Shore benefits their businesses, but most could not explain how or specifically quantify the impact 75 Businesses tentatively supported some financial assistance for Shore, whether a special tax/assessment or a private contribution from business Interview Respondents: Dave Carlson (Euclid Chamber / Insurance); Al Saluan (Lake Shore Cinema); Dan Saltzman (Daves Supermarkets); Miles Carter (Property Owner); Fred Siegal (Eaton Family Credit Union) Several store managers knew little about what went on at Shore Interviews confirmed that most owners see some positive impact however, no one could quantify the impact or seemed to think it was that substantial Most agreed that anything that decreased traffic to downtown Euclid would be a negative Visions for the site and the building varied from bulldoze it to build housing to more retail These are only qualitative and a limited number of responses to a short survey to truly gauge the economic impact of Shore would require a more comprehensive and quantitative economic impact assessment that is outside the scope of the current engagement 3(d). COMMUNITY ENGAGEMENT Summary of Key Constituency: Community Meeting Attendees Profile of Attendees

Top Shore Positives: history; architectural presence of building; central location; auditorium; arts performances; multi-functional spaces Top Shore Negatives: lack of marketing/advertising; cloud of uncertainty hanging over the building; cleanliness and general disrepair; building is too hot or cold Key Elements of Future Vision: 76 90+ attendees at three meetings 90% had some connection to Shore, and most attendees visited Shore at least once or twice a month Majority were over 50 85% were Euclid residents clean, restored and upgraded facility including the auditorium mix of non-profit, retail, business and culture with an emphasis on the arts dominant downtown economic generator educational opportunities and tutoring programs for students of all ages programming for youth, particularly in the summer programming for seniors and adults to attract a diverse group of users in both age and ethnicity 3(d). COMMUNITY ENGAGEMENT Programmatic Preferences of Community Meeting Attendees For each of the following potential uses for Shore, please indicate whether you think it should or should not be part of the future vision for Shore.

99% A rt P erformances 98% P erforming A rts C lasses Fine A rts C lasses 97% A rt Galleries 97% 94% R ecreational C lasses 91% Farmers M arket 90% C ommunity C ollege C ourses 85% A fter School P rograms 84% C ity of Euclid k-12 Education 82% Senior C lasses and A ctivities 79% C ity R ec Department P rogramming 76% C hild care/Day care 75%

Offi ce Space for Nonprofits 72% C areer A pprenticeship/J ob R etraining 65% R etail 53% B usiness Incubator 38% Non-C ity of Euclid k-12 Education 22% Library 77 Housing 6% 3(d). COMMUNITY ENGAGEMENT Summary of Key Constituency: Shore Board Initial visioning with the board turned up very little that hasnt been part of board vision for some time, and a lack of consensus on priority users for the building Consensus was that Shore was closest to its peak potential in the last 6-12 months and the key was a full time manager

78 However, the Boards vision was a broad arts-focused community center concept with very few inappropriate users Culinary school opening, expanding Farmers Market, expanded Tri-C presence Current board activities are broad in scope and self-evaluation by the board was very inconsistent board members rated themselves as 2 and 8 in the same category Most blame for the buildings current condition pointed to (1) mismanagement/lack of professional management and (2) lack of resources 3(d). COMMUNITY ENGAGEMENT Summary of Key Constituency: Shore Tenants Tenant survey of 12 Shore tenants 75% are satisfied with Shore, 83% think it is a good deal financially, Physical condition of the building is a concern, but tenants do not seek major rehab, just better maintenance and cleanliness Over 90% would stay if rent remained the same, and 70% would consider a long term lease Half would consider increased rent to help cover Shores expenses Top concerns about Shore: uncertainty over future of building, rent, general disrepair, and maintenance Tenants mirrored community meeting responses on users

79 Arts, cultural, educational, and recreational users most preferred 2nd tier users child care, after school programs, senior programs, job retraining, nonprofits, and caf Non-preferred users: housing, library, business incubator Follow up tenant interviews revealed energy, enthusiasm, and ideas for the building and a sense that tenants were part of a Shore community 3(d). COMMUNITY ENGAGEMENT Summary of Key Constituency: Library and Schools Library: Library at Shore site but not in Shore Euclid Library continues to support concept of a new library on the Shore site to drive traffic, energy, and activity downtown A second library presence at Shore would not be worthwhile it would drain energy from the main library and shoehorn a library use into Shore The library would like to see Euclid governments/entities get together to prioritize vision and priorities (i.e., schools, city, library, shore) and focus energy and resources Schools: Open to possibility of expanding Shore presence Several community needs that could be filled at Shore or elsewhere:

80 The existing Shore building would not be conducive, and would need to be rebuilt from the shell to work Arts/cultural education and programming After school programming for youth Community meeting rooms School reconstruction program expected to have two vacant elementary schools available to community Lincoln and Indian Hills Would entertain long term commitment to Shore with Culinary School and consider moving additional vocational education programs from High School to Shore 4. Mission 81 4. MISSION Mission Statement: Considerations What is a Mission Statement? Considerations in crafting a Mission Statement for Shore 82 The answer to the question: why does the organization exist?

A mission statement briefly and eloquently states the purpose and goal of an organization A good mission statement guides decision making and helps set policy and direction for an organization and its employees Scope. There is near unanimous support for a narrow, arts focused mission, and strong, but slightly less support for a broader community-center type mission. Striking the appropriate scope of Shores mission is critical, and once defined and agreed to, key tenant decisions must be informed by the mission statement. Subject. Shore is a physical building. Shore can also refer to its board, the Shore Cultural Centre Corporation, its owner, the City of Euclid, or its privately management. The target mission statement must be pegged to a specific subject in this case, the building. Finances. A Mission Statement cannot be created in the abstract of the financial wherewithal of the building to achieve its mission. As Shore is currently a publiclyowned asset and its mission will involve public benefit, the financial considerations are political: Euclids elected officials will have to weigh the community benefit of the Mission Statement against the financial costs 4. MISSION Examples of Mission Statements for Arts and Cultural Centers 83 Beck Center: To offer the highest quality arts experience, performance, and education to all people and communities of the region The Cambridge Center for Adult Education: To provide affordable, high-quality courses and cultural programs to benefit the community. The Emerson Center for Arts and Culture: to serve as a primary resource for the arts, arts education and cultural activities in southwest Montana by stimulating and celebrating the arts in all its forms; fostering lifelong appreciation and understanding of arts and culture; and building community and economic development among creative enterprises, businesses and civic organizations. The Feltre School Arts Program: The Feltre School brings together people from a wide variety of backgrounds who aspire to cultivate a life of the mind, and who value self-reliance and individual accomplishment. The Willoughby Fine Arts Association: Offering classes, private music lessons, theatre performances, concerts and cultural activities, The Fine Arts Association is dedicated to keeping the

flow of imagination, creativity and expression flourishing. The Manchester Bidwell Corporation: Through education, MBC supports individuals and entities to build, strengthen and enhance communities. Solon Center for the Arts: Solon Center for the Arts strives to be recognized as an effective and unique teaching and learning resource in the Solon community. The Center will be a leader in cultural enrichment and artistic quality, characterized by continuous improvement, innovation and community responsiveness. Through its programming, the Center will provide opportunities and reinforce appreciation of the arts, with the intent of maximizing the potential and enjoyment for all individuals. 4. MISSION Mission Statement To provide transformative, dynamic, and high quality arts, cultural, and lifelong learning experiences that build community, enhance quality of life, and strengthen Euclid and Northeast Ohio 84 4. MISSION Mission Statement LIFELONG LEARNING ARTS QUALITY OF LIFE 85 CULTURE BUILD COMMUNITY STRENGTHEN EUCLID AND NEO 5. Organizational Values 86 5. ORGANIZATIONAL VALUES Organizational Values

What are Organizational Values? Why have Organizational Values? 87 Qualities or traits that the organization values most highly Describes the beliefs and rules that govern the organization Values, along with Mission, are used to guide organizational decision making Test by putting the words Shore values in front of each statement Mission alone is not enough to evaluate organizational decisions - it is the embodiment of the values, but itself is not a value statement Values reflect the multifaceted aspect of an organization 5. ORGANIZATIONAL VALUES Examples of Organizational Values from Other Arts/Cultural Centers Emerson Center (Bozeman, MT) Maui Arts and Cultural Center (Honolulu, HI)

People have an inherent need to create Arts are meaningful expressions of cultures The arts have the power to build and transform community Learning takes place when audiences and artists connect (live arts experiences) Arts are essential to the complete education of children Hawaiian culture is vital to our identity Everyone is welcome - we live aloha! We have a responsibility to maintain the quality of the facility and staff We have a commitment to excellence in all our activities Fiddlehead Center for the Arts (Gray, ME) 88 Furthering art appreciation, expression and participation for all ages Artistic and cultural vitality as the heartbeat of community Excellence and professionalism in all exhibition, educational and presenting practices Integrity: We support an environment that is ethical and authentic to the people we serve, the work we do and the community as a whole Respect: We support an environment that is inclusive of one another and is open to a free-flow of self-expression Creativity: We support an environment that promotes imagination and inspires ones work and ideas Inspiration: We support an environment that encourages enjoyment in work, in learning and in meaningful play 5. ORGANIZATIONAL VALUES Organizational Values Shores Organizational Values (in no specific order)

89 Broad community participation from Euclid and beyond Financial responsibility and accountability Quality programming Arts and cultural opportunities for youth Health and recreation Lifelong learning opportunities Maximizing Shore for the greater community good Synergy between uses/tenants Showcasing Euclids assets Regional appeal and attraction Diversity of users, visitors, and tenants Building community partnerships in Euclid and beyond Utilization of the building and auditorium Safe, secure, and family-friendly atmosphere 6(a).One, Three, Five Year Objectives: Programmatic/Leasing/Marketing 90 6(a). EXISTING CONDITIONS: PROGRAMMATIC, LEASING, MARKETING Existing Conditions: Building Usage % of Shore Classroom/Gym Space Used By Tenant Type 3.00% 15.00% 40.00% Full Tenants use only 40% of the building Rooms utilized for classes and room

rentals are typically for evening or weekend use many of these rooms are used less than 10 hours a week 25.00% 17.00% Room Rental Classes Dual Use 25% of the classroom and gym space at Shore is not currently used at all Full Tenants Vacant Dual use includes any room used for combination of room rental, classes, and/or full tenants 53 performance dates scheduled in Auditorium through 9/15 Analysis is based on 67,443 SF of rentable classroom and gym space in the building, which does not include 91 common areas (hallways, restrooms), locker rooms, maintenance, or the auditorium floor or balcony 6(a). EXISTING CONDITIONS: PROGRAMMATIC, LEASING, MARKETING Existing Conditions: Building Usage New Day + Culinary Schools take up nearly of Full Time Tenant Space Full Time Tenants (SF Rented) 5% 11% New Day is over 60% of Full Time Tenant revenue; Culinary School = 4% of revenue* Full Time Tenants (Annual Rent) 3% 1% 0% 4% 1% 9%

13% 46% 16% 62% 4% 25% New Day Academy GED Euclid Hunger Elaine Greene 92 Culinary School Love N Care Daycare WIC New Day Academy GED Euclid Hunger Elaine Greene Culinary School Love N Care Daycare WIC * Note: Culinary School rent goes to City capital fund, not to Shore operating 6(a). EXISTING CONDITIONS: PROGRAMMATIC, LEASING, MARKETING Existing Conditions: Tenant Mix Current tenant mix lacks any consistent theme or relationship it is a hodge podge of tenants Current tenant mix does not fully capitalize on potential synergies Many tenants/users are completely isolated from other users and

do not interact There is a potential for greater synergy and partnership between the existing tenants that could help the entire building 93 Engagement of charter school students in extracurricular arts/cultural classes has the potential to strengthen educational performance, help arts teachers with enrollment, and create a greater sense of community in the building Connection of recreation department users to educational or arts enrichment options has the same potential, and further connects end users to the building Some sense of camaraderie exists among long time tenants, but it is largely out of a common sense of suffering/fighting to keep the building open rather than partnership 6(a). EXISTING CONDITIONS: PROGRAMMATIC, LEASING, MARKETING Existing Conditions: Marketing The Shore brand is not well defined Current mix of tenants and uses does not fit the term Shore Cultural Centre and is not easily definable Many residents, and most downtown businesses, do not know what goes on at Shore The physical condition of the building has a disproportionate impact on the brand Marketing efforts are limited

Common refrain in community engagement Current marketing is not reaching a wide audience 94 it isnt marketed well no one knows what is going on there Budget, time constraints, and quality of materials all have an impact Responsibility and Accountability for Marketing not well defined 6(a). 1, 3, 5 YEAR OBJECTIVES: PROGRAMMATIC, LEASING, MARKETING Shore User Types 95 Community engagement process helped to segregate current and potential users into four use types Core: user is central to mission and helps achieve organizational values, i.e., the type of user we want to fill the building with Complementary I and II: user enhances mission and organizational values but is not 100% consistent with mission and organizational values, i.e., the type of user who we want in the building to complement core uses Transitional: user offers short term financial benefit to Shore, but is inconsistent with the mission and organizational values, i.e., the type of short-term user that can help stabilize the building as we implement the strategic plan Not Acceptable: user is inconsistent with mission and organizational values and is not a practical short term user to boost building finances, i.e., the type of user we dont currently have and there is no use pursuing 6(a). 1, 3, 5 YEAR OBJECTIVES: PROGRAMMATIC, LEASING, MARKETING Shore Use Types

CORE COMPLEMENTARY I Arts performances (orchestra, theatre, dance) Food (culinary school, caf, coffee stand) Art galleries and studios [Community] college courses Performing arts classes (dance, theater, etc.) Fine arts classes (painting, photography, etc.) Recreational classes (jazzercise, yoga, basketball, etc.) Artist live/work housing Arts retail (gift shop, etc.) Church groups Small businesses (office) Offices for nonprofits Business incubator Career apprenticeship / job retraining Senior classes/activities COMPLEMENTARY II Art shows / festivals Arts institutions Social services (hunger center, WIC) General education (GED) After school programs Recreational programming 96 Charter school

Farmers market Child care / Day care Lecture series TRANSITIONAL NOT ACCEPTABLE Housing Library General Retail 6(a). 1, 1, 3, 3, 55 YEAR YEAR OBJECTIVES: OBJECTIVES: PROGRAMMATIC, PROGRAMMATIC, LEASING, LEASING, MARKETING MARKETING Objective: Increase Base of Classes Increase Base of Classes: class offerings are mission critical: many touch on all three prongs (arts, culture, education) of the mission. Increasing arts + cultural class offerings will add to the critical mass, increase room utilization, and add energy to the building Tactics 97

One Year Objective: add five new arts/culture related classes to the building class schedule Three Year Objective: double current 2009 classroom-hours Five Year Objective: triple current 2009 classroom-hours Review prior year class offerings and contact instructors who no longer teach at Shore Outreach to instructors who work in surrounding communities Group meeting with existing instructors to seek recommendations Outreach to New Day Academy, Euclid Schools, and Euclid Recreation Department to increase student-age enrollment in classes Explore evening rentals of Culinary School / kitchen space for classes 6(a). 1, 3, 5 YEAR OBJECTIVES: PROGRAMMATIC, LEASING, MARKETING Objective: Expand Auditorium Usage Expand Auditorium Usage: the auditorium is one of Shores strongest physical assets, and most performances are closely tied to the Shore mission. Evening performances have the potential to drive overflow traffic to downtown Euclid restaurants/bars. During Corals management, we have received more than 20 inquiries into renting the auditorium for additional performances Tactics 98 One Year Objective: add ten new performance events in the auditorium and an annual Shore Stage marketing campaign Three Year Objective: add twenty new performance events in the auditorium Five Year Objective: add sufficient events to have the performances on 100 days each year Aggressive follow up on auditorium usage inquiries Outreach to former auditorium users Additional contact with regional performing arts organizations Outreach to regional concert promoters Revisit rates and security policies for auditorium

6(a). 1, 3, 5 YEAR OBJECTIVES: PROGRAMMATIC, LEASING, MARKETING Objective: Create a Marketing Program that Drives Traffic and Increases Awareness Create a Marketing Program that Drives Traffic and Increases Awareness: one of Shores biggest perceived weaknesses is marketing. The better Shores classes and events are marketed, the greater the potential for community benefit. This function has often fallen in between the Board, the City, and the building management. Tactics 99 One Year Objective: obtain two earned media placements in Cleveland-area newspapers and magazines (PD / Scene / Free Times / Cleveland Magazine) Three Year Objective: create a new signage and wayfinding program on the Shore grounds and inside the Shore building Centralize marketing efforts in full time property manager / staff Initiate re-branding program for Shore revisit logo, tagline, graphics Mail class offerings to every Euclid resident at least twice a year and at least 30 days prior to the start of classes Create a more professional look and feel to Shore communications Explore a partnership with aspiring graphic designers discounted rent in exchange for work on Shores class catalogue, advertisements, and communications Create and maintain a social media presence (Facebook, Twitter)

Seek free publicity in the Scene/Free Times and Plain Dealer angles include historical/political piece on Shore and its current challenges, piece on the strategic plan, features on classes/performances Seek cooperation from Euclid Library and Euclid Schools to advertise Shore events and programming Create cross-promotional opportunities with downtown businesses (i.e., 10% off at movie theatre or downtown restaurant with Shore ticket stub or for Shore class participants) Create Shore membership program for discounts on Shore classes and events for a small annual fee 6(a). 1, 3, 5 YEAR OBJECTIVES: PROGRAMMATIC, LEASING, MARKETING Objective: Create an After School Arts Enrichment Program Create an Afterschool Arts Enrichment Program: stakeholders identified after school activities for youth as a critical need in Euclid. Our market study of Manchester Bidwell Corporation in Pittsburgh showed a model of intensive after school youth arts enrichment and apprenticeship. Shore has the base of classrooms, equipment, and teachers. One Year Objective: define pilot program of youth after school classes for launch in year two Three Year Objective: expand size of pilot program to 90 youth in five or six arts disciplines Five Year Objective: expand program to serve 300 youth Tactics 100 Kickoff meeting with Euclid Schools officials, Shore management, and Shore class teachers to explore feasibility, scope out program and goals, and identify costs Identify arts teachers/mentors willing to be part of the program Potential site visit to Manchester Bidwell Corporation Write proposals to seek grant funding, if necessary 6(a). 1, 3, 5 YEAR OBJECTIVES: PROGRAMMATIC, LEASING, MARKETING Objective: Function, Use, and Tenant Diversification

Diversify the Functions, Uses, and Tenants at Shore: two-thirds of full tenant space, and over 60% of full tenant rent, is from two tenants stabilizing the tenant base and moving towards 100% core uses will require different types of tenants and uses that are a closer fit with the building mission. One Year Objective: Sign at least three new tenants that fit with Shores core uses, values, and mission Three Year Objective: Rely predominantly on core and complementary users Five Year Objective: Rely exclusively on core and complementary users Tactics Create zone uses within floor plan to target different uses Outreach to former tenants that are a fit with current mission Encourage current class teachers to rent studio space 101 Arts-focused business incubation (graphic design, architecture) Dedicated room usage studio and classroom space Seek a long term relationship with a post-secondary educational tenant As part of leasing efforts, accurately survey room square footage and building square footage to resolve inconsistency between prior studies, historical plans, and current floor plan square footages 6(b). One, Three, Five Year Objectives: Community

102 6(b). 1, 3, 5 YEAR OBJECTIVES: COMMUNITY Objective: Attract a greater percentage of Euclid residents to Shore Attract Euclid residents to Shore: additional traffic at Shore provides opportunity to fulfill mission of enhancing quality of life and strengthening downtown. To be a true community asset, it is critical for Euclid residents to use Shore. Tactics 103 One Year Objective: attract 1,000 unique Euclid residents to Shore throughout the year Three Year Objective: attract 5,000 unique Euclid residents to Shore throughout the year Five Year Objective: attract 15,000 unique Euclid residents to Shore throughout the year Discounted rates for Euclid residents or Shore Members who join at a low rate ($5/yr) Achievement of related marketing and programming objectives - specifically a Use Shore campaign targeted at Euclid residents Neighborhood outreach strategy 6(b). 1, 3, 5 YEAR OBJECTIVES: COMMUNITY Objective: Make Shore Cultural Centre a Reason to Stay in / Move to Euclid

Make Shore Cultural Centre a Reason to Stay in / Move to Euclid: one way Shore can play a role in strengthening Euclid is to become a reason people cite for staying in Euclid or moving to Euclid indicate that Shore is a reason they live or moved to Euclid Tactics 104 One Year Objective: create system to mail Shore marketing and welcome package to every new resident in Euclid Three / Five Year Objective: 50% of Shore tracking survey respondents indicate that Shore is a reason they live or moved to Euclid Five Year Objective: 65% of Shore tracking survey respondents Ensure Shore is included any time there is a listing of Euclids assets printed materials, comments by public officials, marketing materials for realtors and apartment leasing agents Meeting and tour for realtors Through other plan objectives, achieve greater participation and variety of uses at Shore Tracking survey of Shore users and residents 6(c). One, Three, Five Year Objectives: Financial/Operations 105 6(c). EXISTING CONDITIONS: FINANCIAL/OPERATIONS Existing Conditions: Rent Levels Annual Rent PSF $9.72 $9.12

$8.82 $8.64 $8.51 $1.09 Elaine Green 106 Love 'N' Care Daycare GED New Day WIC Note: Culinary School rent goes to City capital fund, not to Shore operating Culinary School $0.00 Hunger Center 6(c). EXISTING CONDITIONS: FINANCIAL/OPERATIONS Existing Conditions: Shore Revenue Sources $400,000 $350,000 $300,000 $95,838 $80,366 $250,000 $78,038 $200,000 $77,180

$10,284 $7,907 $6,700 $7,134 $48,010 $150,000 $100,000 $25,000 $10,383 $229,676 $178,188 $195,478 $211,921 $141,766 $50,000 $0 2005 2006 2007 2008 2009 YTD (Jan-Sept) Board Donation for Operations Earned Revenue (Board) (classes, rentals, theater, 2007 incl. orchestra) Board Donations (2006-07 incl. orchestra) Lease Income (City) 107 Numbers do not include City general fund transfer of $167,000 in 2008 or City contribution of $20,000 in 2009 6(c). EXISTING CONDITIONS: FINANCIAL/OPERATIONS Existing Conditions: Shore Expenses

$500,000 $450,000 $400,000 $350,000 $313 $532 $110,237 $136 $94,028 $286 $98,345 $300,000 $250,000 $200,000 $36,695 $49,842 $48,990 $35,466 $132,274 $35,610 $55,791 $14,625 $40,590 $97,181 $69,373 $30,586 $150,000 $100,000 $59,206 $187,824 $193,937

$198,533 $201,166 $110,173 $50,000 $0 2005 Personnel Utility 108 2006 2007 Contracted Services Misc / Mgmt Fees 2008 2009 YTD Equipment / Supplies (Jan-Jun) 6(c). EXISTING CONDITIONS: FINANCIAL/OPERATIONS Existing Conditions: Annual Shore Deficit 2005 2006 2007 2008 2009 YTD (Jan-Sept.) $0 ($20,000) ($40,000)

($60,000) ($52,767) ($80,000) ($86,612) ($100,000) ($120,000) ($93,199) ($121,769) ($140,000) ($143,522) ($160,000) 109 6(c). EXISTING CONDITIONS: FINANCIAL/OPERATIONS Existing Conditions: Building Operations Management-related issues prior to engagement of Coral Professional building management has made a difference 110 Building was not properly cleaned Lack of preventative maintenance Maintenance staff were not performing their job responsibilities

No maintenance or cleaning protocols were in place Doors did not lock properly No consistent full time property manager with clear authority over tenant leasing, marketing, building operations, and employees Minimal investment in building systems or appearance, through capital or operations Building appearance, inside and out, has improved Efficiency measures have reduced electricity usage Streamlined accounting produces accurate, timely picture of building performance 6(c). BUDGET SUMMARY: FINANCIAL/OPERATIONS One Year Budget Summary Revenues Shore Cash Balance* 58,000 Expenses Personnel Rental Income 216,518 Utilities 135,600 Class and Room Rental 96,896 Management 36,000 Board Donations 16,800 General Fund Transfer 85,086 Total

473,300 Marketing + Administrative Repairs + Maintenance Contracted Services Total 18,300 57,200 18,570 473,300 * projected 12% 4% 12% 46% Leases 18% Class/Room Rental Board Donation 4% 20% 111 Personnel 43% Utilities Mgmt Marketing + Admin 8% Repairs + Maint. General Fund

4% 207,630 Contracted Services Cash Balance 29% 6(c). STAFFING SUMMARY: FINANCIAL/OPERATIONS Shore Staffing Plan Position Base Total Full-Time Building Manager $45,000.00 $58,950.00 Part-Time Office Manager at $10 per hour, no benefits $15,600.00 $17,628.00 $0.00 $0.00 Full-Time Certified Boiler Operator/Maint./Janitorial - Supervisory First Shift - Year-round $40,000.00 $52,400.00 Full-Time Certified Boiler Operator/Maint./Janitorial - Second Shift seven months $23,000.00 $30,130.00

Full-Time Certified Boiler Operator/Maint/Janitorial - Swing Shift seven months $23,000.00 $30,130.00 Part-Time Janitorial at $9 per hr. - year-round $14,040.00 $18,392.40 Total $160,640.00 $207,630.40 Part-Time Admin. Assistant (paid through Senior Program) 112 6(c). 1, 3, 5 YEAR OBJECTIVES: FINANCIAL/OPERATIONS Objective: Reduce City of Euclid Funding Support Reduce Funding Subsidy: Shores operating deficit has been between $53,000 and $143,000 over the last five years. As the Strategic Plan is implemented and attention is paid to operational, programmatic, capital, marketing, and fundraising issues, Shore will be able to gain greater financial independence by reducing its subsidy Tactics 113 One Year Objective: Reduce City subsidy to less than $150,000 Three Year Objective: Reduce City subsidy to less than $125,000

Five Year Objective: Reduce City subsidy to less than $100,000 Adopt strategic plan and five year operating/capital budgets, and revisit budgets annually Make progress on leasing, marketing, fundraising, and capital objectives 6(c). 1, 3, 5 YEAR OBJECTIVES: FINANCIAL/OPERATIONS Objective: Reduce Energy Usage by 15% Reduce Utility Costs: Shores biggest fixed expense is utility costs (and the associated labor costs associated with the boilers) Tactics 114 One Year Objective: Reduce Utility Usage by 5% Three Year Objective: Reduce Utility Usage by 10% (cumulative) Five Year Objective: Reduce Utility Usage by 15% (cumulative) Replace building lights with energy efficient bulbs Keep lights off during daytime or when rooms not in use Close building and shut off lights/reduce gas promptly at closing time Phased window replacement program Replace A/C window units with energy efficient units Explore tenant bill back for gas costs Boiler replacement with zone-heating Cut off heating to unused portions of building Concentrate existing users in limited portions of building Explore cost-savings by contracting out boiler operations/maintenance 6(c). 1, 3, 5 YEAR OBJECTIVES: FINANCIAL/OPERATIONS

Objective: Increase Revenue by 10% Each Year for Five Years 115 Increase Revenue: Additional revenue is mission critical for Shore it will enable more marketing to fill the building with tenants and visitors, and allow critical building improvements to enhance Shore. One Year Objective : Increase Revenue by 10% from base of $300,000 (to $330,000) Three Year Objective: Increase Revenue by 10% each year (after accounting for transition tenants) Five Year Objective: Increase Revenue by 10% each year (after accounting for transition tenants) Tactics Sign 3-5 year tenant leases with lease rate increases Aggressively plan for replacement of transition tenants Require utility reimbursements for new tenants Maximize grant funding Increase room rental / gym rental / auditorium rental rates to market Aggressively grow class attendance Increase building fundraising annually 6(c). 1, 3, 5 YEAR OBJECTIVES: FINANCIAL/OPERATIONS Objective: Create Biennial Operating Plans 116 Create Bi-Annual Operating Plans: To achieve its community goals, Shore must be operated on a consistent plan that permits proper maintenance and care for the building. A main reason for the current condition of the building is a lack of funding and attention to maintenance and upkeep. One Year Objective: Adopt first Operating Plan by January 2010 Tactics Quarterly Operating Plan and budget review Open lines of communication when unforeseen capital or

repair issues arise 6(d). One, Three, Five Year Objectives: Governance/Ownership 117 6(d). EXISTING CONDITIONS: GOVERNANCE/OWNERSHIP Existing Conditions: Governance Shore governance is effectively split between the City of Euclid Department of Recreation and the Shore Cultural Centre Corporation Board of Trustees While the Recreation Department technically governs the building, the Board pays for and controls some building staff, does all marketing, has extensive tenant contact, and plays many other overlapping roles The division of responsibilities is unclear, there is substantial distrust between the City and Board, and this has many negative results for Shore: 118 Confusion Overlapping functions (and additional cost) Unmet needs / unfulfilled tasks Lack of accountability Mismanagement Poor building performance 6(d). EXISTING CONDITIONS: GOVERNANCE/OWNERSHIP Existing Conditions: Governance

Examples of Governance Challenges Dual Accounting City keeps financial records for the building and collects most rent Board keeps financial records for some aspects of the building and collects some user and attendance fees Result: Staffing At time Coral took over, the Shore office had City paid staff and Board paid staff, including some members paid some by each Historically, the building manager has been paid by the City, the Board, or both Challenges - who is really running the building? Who is accountable? Tenants 119 Two sets of books, with no one looking at the full financial picture of Shore Duplication of staff time on accounting Tenants are often confused as to who the landlord is - the City or the Board Historical example: board member and City gave conflicting information to a tenant about improvements to a classroom - this is not a good way to retain tenants Certain tenants (Silhouette Players, Euclid Orchestra) have arrangements with the Board but no leases with the City or the building management 6(d). EXISTING CONDITIONS: GOVERNANCE/OWNERSHIP

Existing Conditions: Board Assets: Passion, commitment, and dedication Volunteer capacity Fundraising capacity Knowledge of building Liabilities: Lack of clear vision / direction Lack of board diversity: age / experience / business acumen Board does not have clear scope of responsibilities Specific board capacity needs 120 Marketing Accounting Historic renovation Operations and management 6(d). 1, 3, 5 YEAR OBJECTIVES: GOVERNANCE/OWNERSHIP Objective: Centralize Key Functions with Professional Shore Management Staff Centralize Key Functions: To eliminate the confusion and lack of accountability present under the current hybrid governance

structure, the City and Board should empower Shore management and staff with exclusive responsibility for: 121 Tenant recruitment, negotiation, and communication Building operations and management Marketing Programming Oversight of these functions should come through the Operating Plan review and quarterly budget review processes One Year Objective: create detailed job description for Shore manager and staff members, as well as clearly defined scope for Board. Re-evaluate annually. 6(d). 1, 3, 5 YEAR OBJECTIVES: GOVERNANCE/OWNERSHIP Objective: Reorganize Board Reorganize Board: as it is currently organized, the boards functions are unfocused and as a result the Board is not as effective as it could be in supporting Shore. Reorganization and focus on a narrower (and appropriate) scope of work should be immediately undertaken. Board should be refocused on three functions Board should play no role in:

Fundraising (including grant assistance) Advocacy Volunteer Coordination Tenant relations, negotiations, or rent Programming - all programming should not be the responsibility of the Board, but of Shore staff, including Euclid Orchestra and Silhouette Players Marketing - this should fall under the responsibility of professional Shore staff Staffing - Board should not have or need paid staff New Board members should be recruited with specific background in Business, Accounting, and Fundraising/Event Planning New Board members should be recruited that are a better match for the diversity of users and tenants at Shore One Year Objective: work with board to create revised board mission, scope, and objectives and recruit 3-5 new board members 122 6.(e) One, Three, Five Year Objectives: Fund Development 123 6(e). EXISTING CONDITIONS: FUND DEVELOPMENT Existing Conditions 124 Minimal efforts have been made at Fund Development No grant applications have been made for any type of foundation or other governmental assistance Shore has no endowment or capital reserves Minimal, if any, staff or board time has been dedicated to grant fundraising efforts

Board fundraising averaged $8,000 annually over the past five years 6(e). 1, 3, 5 YEAR OBJECTIVES: FUND DEVELOPMENT Objective: Strengthen Board Fundraising Strengthen Board Fundraising: With a new strategic plan and a revamped Board more narrowly focused on fundraising, strengthening the Boards fundraising efforts will enhance Shores ability to achieve its mission 125 One Year Objective: Board fundraising goal - $16,800 Three Year Objective: Increase board annual fundraising goal to $20,000 Five Year Objective: Increase board annual fundraising goal to $40,000 Tactics Develop annual fundraising events with higher potential Utilize strategic plan to fundraise for targeted aspects of the plan -e.g., marketing efforts Institute suggested donation levels for board members 6(e). 1, 3, 5 YEAR OBJECTIVES: FUND DEVELOPMENT Objective: Initiate Ongoing Grant Writing Efforts Initiate Ongoing Grantwriting Efforts: Comparable centers draw considerable annual income from foundation and government grants. No efforts have been made to date to obtain grant funding for Shore

126 One Year Objective: Raise $10,000 in grants for operations Three Year Objective: Raise $25,000 in annual grants for operations Five Year Objective: Raise $40,000 in annual grants for operations Tactics Compile list of major foundations to meet with to present strategic plan and initiate relationships Hire a development director at least part time to write grants Carefully evaluate opportunities for government and foundation funding identified in strategic plan and pursue relevant opportunities 6(f). One, Three, Five Year Objectives: Parks and Outdoor Space 127 6(f). 1, 3, 5 YEAR OBJECTIVES: PARKS + OUTDOOR SPACE Existing Conditions 128 Park and external areas are reasonably wellmaintained, but underutilized Other than farmers market, park is largely unused Long term objective is to physically redevelop the Triangle Park space to encourage greater use Shorter term is to increase traffic and use of park through events and creative uses in existing space 6(f). 1, 3, 5 YEAR OBJECTIVES: PARKS + OUTDOOR SPACE Objective: Increase Programming in Park Space Increase Programming: The Triangle Park and outdoor space at Shore offers an opportunity to increase traffic to and around Shore, awareness of activities and Shore, and to capitalize on the central location of the park. Increasing programming at the park is

consistent with Shores organizational values and mission. Tactics 129 One Year Objective: Create one new open-to-the community event in the Triangle Park that draw at least 250 people Three Year Objective: Draw at least 1,000 people to Triangle Park each year for events, activities, or art displays. Complete designs for redevelopment of Triangle Park area. Five Year Objective: Draw at least 3,000 people to Triangle Park each year for events, activities, or art displays. Begin redevelopment of area. Explore possibility of arts/sculpture displays in the park from art created in classes at Shore or by Euclid students Initiate public art competition to fill Triangle Park with sculpture Work with groups that use the auditorium stage to hold events outside in the park during warm weather months Charrette with Euclid residents, public officials, and Shore constituents for future designs and uses of the park Explore possibility of outdoor dining for Culinary School restaurant in the park 7. Five Year Financial Forecast 130 7. FIVE YEAR FORECAST Five Year Financial Forecast Revenue assumptions and considerations

Based on newspaper reports of potential state action to shut New Day Academy at the end of this school year, one version of the forecast assumes New Day vacating in year 2 and one version assumes they leave in year 3 Room rental and class revenue is projected to increase at 20% annually Remaining revenue assumptions for board and grants are based on plan objectives Expense assumptions and considerations 131 The timing of New Days transition has a substantial impact on the bottom line of the forecast the sooner they leave, the less time there is to prepare and show progress on plan implementation Re-leasing of the New Day space is assumed at 25% annually Most expense categories are projected to rise 10% annually Utilities decrease beginning in year 3 according to the plan objectives Management fees increase once, in year 3 7. FIVE YEAR FORECAST Five Year Financial Forecast: New Day Transition = Year Three Year 1 Year 2 Year 3 Year 4 Year 5

Note Leases 216,518 227,344 147,458 174,087 200,715 New Day rooms re-rented @ 25%/ yr Class / Room Rental 96,896 116,275 139,530 167,436 200,924 20% annual increase Board Income 16,800 16,800 20,000 30,000 40,000 Per Plan objectives Grant Income

- 10,000 25,000 35,000 40,000 Per Plan objectives 330,214 370,419 331,988 406,523 481,639 R&M - General 57,200 29,920 32,912 36,203 39,823 Increase 10%/yr; yr 1 incl. boiler repair R&M - Contractors 18,570 20,427 22,470 24,717

27,188 Increase 10% per year Marketing 10,500 11,550 12,705 13,976 15,373 Increase 10% per year Management Fees 36,000 36,000 42,000 42,000 42,000 Increase in Year 3 Utilities 135,600 135,600 122,040 122,040 103,734 Decreased per Plan objectives

Personnel 207,630 218,012 228,913 240,358 252,376 Increase 5% per year 7,800 8,580 9,438 10,382 11,420 Increase 10% per year TOTAL EXPENSE: 473,300 460,089 470,477 489,675 491,915 Net Income (143,086) (89,670) (138,489) (83,152)

(10,276) Revenue TOTAL REVENUE: Expense Administrative 132 7. FIVE YEAR FORECAST Five Year Financial Forecast: New Day Transition = Year Two Year 1 Year 2 Year 3 Year 4 Year 5 Note Leases 216,518 136,632 163,261 189,889 216,518 New Day rooms re-rented @ 25%/ yr Class / Room Rental 96,896

116,275 139,530 167,436 200,924 20% annual increase Board Income 16,800 16,800 20,000 30,000 40,000 Per Plan objectives Grant Income - 10,000 25,000 35,000 40,000 Per Plan objectives 330,214 279,707 347,791 422,326 497,442

R&M - General 57,200 29,920 32,912 36,203 39,823 Increase 10%/yr; yr 1 incl. boiler repair R&M - Contractors 18,570 20,427 22,470 24,717 27,188 Increase 10% per year Marketing 10,500 11,550 12,705 13,976 15,373 Increase 10% per year Management Fees 36,000

36,000 42,000 42,000 42,000 Increase in Year 3 Utilities 135,600 135,600 122,040 122,040 103,734 Decreased per Plan objectives Personnel 207,630 218,012 228,913 240,358 252,376 Increase 5% per year 7,800 8,580 9,438 10,382

11,420 Increase 10% per year TOTAL EXPENSE: 473,300 460,089 470,477 489,675 491,915 Net Income (143,086) (180,382) (122,686) (67,350) 5,527 Revenue TOTAL REVENUE: Expense Administrative 133 8. Exhibit RES. 41-2010 134

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