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TO: Mayor Richard C Irvin
FROM: Chris Minick, Chief Financial Officer, City Treasurer
Alex Alexandrou, Chief Management Officer
David Dibo, Director of Economic Development
DATE: August 23, 2024
SUBJECT:
A Resolution Directing Staff to proceed with the implementation of Phase I of a 3-Phase Financial Sustainability Plan for the Aurora Civic Center Authority (ACCA) in an amount not to exceed $13.8 million.
PURPOSE:
Present the 3-Phase Financial Sustainability Plan for the Aurora Civic Center Authority (ACCA) and approve preliminary City expenditures related thereto.
BACKGROUND:
Since the COVID shutdown and despite its best efforts, ACCA has experienced continual financial challenges in its operations. Theater operations were closed for an extended period. Once the theater company was able to re-establish operations, attendance for performances lagged as people re-adjusted to being in public again. At the same time, the cost structure of the theater industry as well as in the general supply chain increased significantly and inflation was elevated for an extended period.
In response to these challenges, ACCA received significant financial assistance from various sources. The City of Aurora contributed a total of $11.5 million from various Federal grants and assistance sources, primarily ARPA funds. While attendance is finally returning to pre-pandemic levels, the significant increase in the expense structure of ACCA has remained problematic and will likely be permanent. In addition, the pandemic experience has introduced more competition into the entertainment industry creating challenges to increasing ticket prices for performances.
Recognizing the challenges that would occur, the Administration and Council tasked City and ACCA staff to develop and present for approval a long-term plan for financial stability of the organization. The plan has been developed and is presented herein. The plan achieves financial sustainability for ACCA in ...
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