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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
Alex Alexandrou, Chief Management Officer
DATE: May 5, 2021
SUBJECT:
A Resolution authorizing a grant of $1.5 million as a match to the Dunham Foundation Program Investment of $1.25 million and $750,000 grant (total of $2.0 million) to fund startup expenses for the reopening of the Paramount Theater.
PURPOSE:
The Paramount Theater/ACCA has been working diligently throughout the COVID 19 pandemic to receive funding through the Federal Government under programs similar to CARES. Presently ACCA is working on funding of $6.9 million from the Shuttered Venue Operators Grant (SVOG) program. These funds will not be received in a timely manner in order for the Paramount to re-open and begin operations this summer. The Dunham Foundation has agreed to fund $2.0 million if the City of Aurora will match the $750,000 amount on a two to one basis meaning the City grant of $1.5 million
BACKGROUND:
COVID 19 continues to impact the City of Aurora Downtown and this impact is felt the most at the Paramount Theater. At the height of the theater's popularity/success on both an attendance and financial basis the venue was shutdown inv March 2020 and over 90% of staff were either laid off or furloughed. As COVID 19 vaccinations began to become a reality the City and Paramount began the analysis to determine when and how the theater could reopen. In early discussions in December 2020 this re-opening operation could have involved financing from the City in excess of $12 million. City and Paramount Staff have continued to work on alternatives that could reduce this City commitment in lieu of federal funding programs.
The annual operating budget for the theater is approximately $20 million as noted in attachment A. In order to re-open and start up their operations they will incur operating costs for shows for which they have already collected funds/ticket revenue and therefore ...
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