Strategic Institutional Plan by Sangre de Cristo Arts Center

Strategic Institutional Plan 2019-2023

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

TABLE OF CONTENTS Mission Statement & Introduction ............................................................................................................................3 2019 .............................................................................................................................................................................5 2020 .............................................................................................................................................................................8 2021 ..........................................................................................................................................................................11 2022 ..........................................................................................................................................................................14 2023 ..........................................................................................................................................................................17

APPENDIX Sangre de Cristo Arts Center Organizational Chart ..........................................................................................A Cultural & Economic Impact Statements .................................................................................................................B HGF Architects, Inc. Master Plan .............................................................................................................................C A Strategic Analysis & Recommendations of the Sangre de Cristo Arts Center.............................................D

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

MISSION STATEMENT....................................................... The Sangre de Cristo Arts and Conference Center creates artistic learning experiences for everyone.

INTRODUCTION................................................................. Devoted and focused people who work together with a passion towards a common mission are at the heart of every high functioning organization. The Arts Center’s Five-Year Strategic Master Plan (THE PLAN) is organized under seven strategic tenets. They include board development, staff development, mission focused programming, awareness of finances at all levels, planning that remains ongoing, maintaining and building relationships with the community, and maintaining and building relationships with governmental entities, especially with Pueblo County who owns the facility, and the City of Pueblo, both of whom provide substantial annual funding. We believe in constantly developing people who can communicate effectively within agreed upon structures including board committees and within a dynamic staff organization. We achieve our mission through the programs we deliver to our community. Measuring the success of such programs is done through surveys, monthly staff and senior staff meetings, discussion in regularly scheduled board committee meetings, regular board meetings, and ongoing conversations with numerous stakeholders. As a part of our culture we often talk about “the dance” between the mission and the margin. This raises awareness about finances and leads to a fiscal consciousness that runs through every aspect of the organization including board, staff, donors, members, visitors and elected officials. A key part of sharing the development of our people, the value of our mission, fiscal effectiveness, our vision for planning, and our successful relationships with the community and governmental entities is in providing an annual Cultural and Economic Impact Statement since 2013. These statements are included at the back of the plan. Two attached studies guiding the plan are “2017 Sangre de Cristo Arts and Conference Center Master Plan” prepared by the architect’s HGF and “A Strategic Analysis and Recommendations (2018)” prepared by the Healy Center/Hasan School of Business at Colorado State University-Pueblo. Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

PREPARING FOR THE PLAN...........................................

Every year since 2014, the Arts Center has held an annual retreat to build consensus, to measure, and to celebrate the progress of its annual performance plan. In 2014 Arts Center management began reviewing the materials from the last American Alliance of Museums reaccreditation. Management wanted to create an ongoing instrument to share with all its cultural and economic activity, and effectiveness in the form of a Cultural and Economic Impact Statement. Such statements are now created annually. Such impact statements are sent to every member and delivered publicly to the Pueblo County Commissioners and the Pueblo City Council annually. In 2018, we began to deliver it to PEDCo, The Pueblo Economic Development Corporation, at their annual spring lunch for the business community. In 2014, to organize the staff and board, management created an annual performance plan including a new staff organization plan and a new board committee structure. This led to a new mission statement in 2015. It led to a review of board bylaws and restated Articles of Incorporation for both the Arts Center and its Endowment boards - completed and approved in 2017 and 2018. Also in 2018, the board passed a new Employee Handbook. In 2014, we negotiated with Pueblo County for a new 30-year lease and operating agreement. In 2015, the Arts Center secured funding for a multi-year study of the entire facility by the architects HGF, Inc. who have been the architects of record since the Arts Centerâ&#x20AC;&#x2122;s creation in 1972, including its first major addition in 1982 and in the addition of the Buell Childrenâ&#x20AC;&#x2122;s Museum in 2000. In 2018, the Arts Center established a Reaccreditation Committee. It secured funding for a strategic analysis of its operations by the Healy Center in the Business School at Colorado State University. That study culminated in an all-day retreat in January 2019, providing long-range institutional goals that were key to developing THE PLAN. As we prepare for our 50th anniversary in 2022, it is our charge to set the Arts Center up for the next 50 years. Success is dependent on a public/private funding strategy.

SETTING UP THE ARTS CENTER FOR THE NEXT 50

YEARS

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023

SANGRE DE CRISTO ARTS CENTER 5 YEAR PLAN SETTING UP THE ARTS CENTER FOR THE NEXT 50 YEARS

YEAR 2019........................................................................ I. BOARD DEVELOPMENT

Conduct annual retreat with Dr. Michael Wakefield & Healy Fellows (Held 1.12.19) - Adopt goals from CSU-P Strategic Analysis Study into a multi-year plan - Improve board surveying & board orientation Support Staff to Develop a 5-Year Strategic Plan & AAM Reaccreditation - Prep Executive Committee for American Alliance of Museums visit Continue to re-engage former board members with special events & send out 2018 Audit - Planned Giving strategy, Engage Sponsors/Former Board Members event w/“Luster” in September 2019 Develop Capital Campaign Leadership Committee & Multi-year Capital Campaign & Case Statement Select outside Business Plan provider guided by the Finance & Executive Committees (funds pending) Increase engagement: Arts Associates, Young Professionals (YPAC) and volunteers - Arts Associates, Wednesday Weeders for grounds, Tracking hours - YPAC engaged to support existing efforts

II. STAFF DEVELOPMENT/STAFFING Improve staff organization/prioritize staffing needs from CSU-Pueblo study Update Instructor Contracts Seek out staff development opportunities & benefits - Encourage staff to be on boards, Children’s Museum staffperson to ACM, local opportunities for development Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023...................................................................................YEAR 2019 - Explore 403(b) Plan options, Begin salary survey in the Facilities Deptartment

III. PROGRAMMING/MARKETING Build on existing programming across the Arts Center - Expand Friday Arts Academy and School of Dance classes Explore programs, partners and serve community needs vetted through board committees - Increase “Art in Your Place” rentals by 5-10% / Special book sale to benefit collection fund - Continue to seek a Café vendor in the Buell Children’s Museum - Summer exhibit planning for 2021 - Creating traveling exhibits, i.e., Gene Kloss, The Bozzetti w/marketing plan

Marketing efforts - Operationalize new marquee - Create two annual MOSAICs including seeking ads

IV. FINANCES Create plans to increase rentals, membership, sponsorships admission cost, others - Redo memberships and raise cost, increase admission cost/baseline of 1600 members increase by 5-10% - Increase rentals 5-10% - Launch “Paint It Forward” % for the Arts Center with Local Businesses - Sponsorships & Grants (CEO’s Dev. Plan) Goal $650,000 Strategic Financial Management Plan: - Monthly Financials - AAM Accreditation readiness by providing required supporting financial documentation - Implement New Cash Register Software for Gift Shops, Bar, Liquor Room, Front Desk - Implement New Accounting Software by the end of the fourth quarter - Present audit to Finance Committee by July meeting and approved by the board in August

V. PLANNING/CAPITAL IMPROVEMENTS - REVIEW HGF ARCHITECTURAL PHASING American Alliance of Museums 2019 Re-accreditation Year

For Our Future Children Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023...................................................................................YEAR 2019 - 5-Year Strategic Plan to run from 2019-2023 50th Anniversary: Turning Challenges into OPPORTUNITIES! - Develop multi-year capital development plan with County Commissioners - Engage City Leaders - New program space in Lower Level of Buell Children’s Museum Advance multi-year plan for exhibits and the Learning Center - Summer exhibits in place through 2020 with 2021 being explored Continue relationship building, endowment enhancements and planned giving - Continue Arts Center sponsored Learning Tours: 2019 France; 2020 Pacific NW Art Glass tour Maintain Donor Relations - Revisiting Buell “Baby” Wall donors, re-ignite Giving Circle, improve donor database

VI. COMMUNITY PARTNERSHIPS/BUILD AND STRENGTHEN Chamber, Latino Chamber, PCC, CSU, Library, Junior League, & PEDCo - PCC & CSU-P programs, PCC supporting “Luster ,” Junior League, Retirement homes, Convention Center

VII. GOVERNMENTAL RELATIONS/BUILD A POLITICAL AGENDA Increase Annual Funding allowance from the County - Measure success of County Funding/seek $600,000+ in 2020 budget - Develop multi-year funding plan, timeframe and sources for public & private funding + Supporting Business Plan -Revisit Arts Center building insurance coverage with County / Finance Committee Maintain relationships with City, County/Lease Operating Agreement -Deliver 2018 Cultural & Economic Impact Statement by March/April 2019 -Maintain $250,000 line item in the City budget with a COLA -Keep County Commissioners, City Councilors & State Legislators informed

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

Inspire Engage Create Learn

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023

SANGRE DE CRISTO ARTS CENTER 5 YEAR PLAN SETTING UP THE ARTS CENTER FOR THE NEXT 50 YEARS

YEAR 2020........................................................................ I. BOARD DEVELOPMENT

Conduct annual retreat with Dr. Michael Wakefield, Facilitator - 1.18.20 - Review CSU-Pueblo Strategic Analysis Study & multi-year performance plans - Board culture, survey participation & improvements on board orientation/mentoring - Plan to adapt recommendations from AAM Reaccreditation Continue to re-engage former board members with special events/Send out 2019 Audit - Planned Giving strategy, Sponsors/Former Board Members Event w/“Glass Exhibit” in September 2020 efine Capital Campaign Leadership Committee & a Multi-year/Capital Campaign - Increase # of Trustees of Distinction/Capital Campaign Case Statement from Marketing Department Measure & Survey engagement: Arts Associates, Young Professionals (YPAC) and volunteers - Arts Associates, Wednesday Weeders for grounds, Tracking hours - YPAC engaged to support existing efforts

II. STAFF DEVELOPMENT/STAFFING Improve staff organization/continue to prioritize staffing needs from CSU-Pueblo study Update Instructor Contracts Seek out staff development opportunities & benefits - Select Staff & Board to attend AAM meetings - Measure if new 403(b) plan is satisfactory - Continue salary survey beyond the Facilities Department

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023....................................................................................YEAR 2020

III. PROGRAMMING/MARKETING Build on existing programming across the Arts Center - Determine optimum capacity of Arts Academy and School of Dance classes Explore programs, partners and serve community needs vetted through board committees - Increase “Art in Your Place” rentals by 10% /Special Book sale to benefit collection fund - Progress on Café vendor in the Buell Children’s Museum - Summer exhibit planning beyond 2022 - Under contract: traveling exhibits, i.e., Gene Kloss, The Bozzetti w/marketing plan

Marketing efforts - New marquee advertisting-target $800 monthly - Two annual MOSAICs including seeking ads

IV. FINANCES Create plans to increase rentals, membership, sponsorships admission cost, others - Plan to increase membership/baseline 1,700 increase by 5-10% - Increase rental revenue 5-10% - Continue “Paint It Forward” for the Arts Center with Local Businesses - Sponsorships & Grants Goal of $600,000 - Reduce Endowment need by $20,000 Strategic Financial Management Plan: - Monthly Financials - Implement New Cash Register Software for Gift Shops, Bar, Liquor Room, Front Desk - Share New Accounting Software among all departments - Present audit to Finance Committee by July meeting and approved by the board in August

V. PLANNING/CAPITAL IMPROVEMENTS - REVIEW HGF ARCHITECTURAL PHASING 50th Anniversary: Turning Challenges into OPPORTUNITIES! - Jackson Building improvements - bar and wall repairs - Planning of new “Sensations” area in Children’s Museum/ Seek grants and sponsors for funding

For Our Future Children Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023....................................................................................YEAR 2020 - Operationalize new program space in lower level of Buell Children’s Museum

Advance multi-year plan for exhibits and the Learning Center - Summer exhibits in place for 2021/ Explore 2023 exhibits Continue relationship building, endowment enhancements and planned giving - Continue Arts Center sponsored Learning Tours : 2020 Pacific NW Art Glass tour; 2021 Italy-Da Vinci Tour Maintain Donor Relations -Re-engage Buell “Baby” Wall donors, re-ignite Giving Circle, improve donor database

VI. COMMUNITY PARTNERSHIPS/BUILD AND STRENGTHEN Chamber, Latino Chamber, PCC, CSU, Library, Junior League, & PEDCo -CSU-Pueblo & PCC-supported exhibits, retirement homes, Convention Center

VII. GOVERNMENTAL RELATIONS/BUILD A POLITICAL AGENDA Increase Annual Funding allowance from the County -Measuring success of County funding/seek $625,000+ COLA in 2021 budget -Establish timeframe and sources for public & private funding-and bonding options + Supporting Business Plan Maintain relationships with City, County/Lease Operating Agreement - Deliver 2019 Cultural & Economic Impact Statement by March/April 2020 - Maintain $250,000 line item in the City budget with a COLA - Keep County Commissioners, City & State Legislators informed - Publicly deliver Cultural & Economic Impact Statement to PEDCo, County and City

Inspire Engage Create Learn

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023

SANGRE DE CRISTO ARTS CENTER 5 YEAR PLAN SETTING UP THE ARTS CENTER FOR THE NEXT 50 YEARS

YEAR 2021........................................................................ I. BOARD DEVELOPMENT

Conduct annual retreat and secure a facilitator - 1.16.21 - Readiness for 50th Anniversary, Review previous year’s Cultural & Economic Impact Statement - Board Culture, survey participation & improvements on board orientation/mentoring - Review board meeting time/dates/agenda/effectiveness - Are we ready for an Arts District or a Mill Levy? ZOO as a partner? Continue to re-engage former board members with special events-Send out 2020 Audit - Planned Giving strategy, Sponsors/Former Board Members Event w/“2021 Exhibit” in September 2021 Capital Campaign Launched - Increase # of Trustees of Distinction/Capital Campaign Measure Progress/Refine Case Statement Measure engagement: Arts Associates, Young Professionals (YPAC) and volunteers - Arts Associates, Wednesday Weeders for grounds, Young Professionals Arts Council (YPAC) tracking hours

II. STAFF DEVELOPMENT/STAFFING Improve staff organization/continue to prioritize staffing needs from CSU-Pueblo study Seek out staff development opportunities & benefits - Review effectiveness of key staff being on other boards/Create staff team building day

III. PROGRAMMING/MARKETING Plan for 50th Anniversary programs/develop a specific list/budget Build on existing programming across the Arts Center - Conduct a community needs study Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023...................................................................................YEAR 2021 Explore programs, partners and serve community needs vetted thru board committees - Monthly sensory-friendly days at Buell Children’s Museum - Progress on Café vendor in the Buell Children’s Museum/revenue-sharing structure - Summer exhibit planning beyond 2022 - Under contract: traveling exhibits, i.e., Gene Kloss, The Bozzetti, adding other exhibits to inventory Marketing efforts: New marquee advertising-10% increase/Three annual MOSAICs

IV. FINANCES Create plans to increase: rentals, membership, sponsorships, admission cost, 50th Anniversary - Plan/Fundraise for a Budget for the 50th Anniversary - Plan to increase membership by 5-10% - Increase rentals 5% - Continue “Paint It Forward” % for the Arts Center with Local Businesses - Sponsorships & Grants (CEO’s Dev. Plan) Goal TBD to budget - Increase gifts to endowment/discuss realistic % increase Strategic Financial Management Plan: - Monthly Financials - Review New Cash Register Software for Gift Shops, Bar, Liquor Room, Front Desk - Review effectiveness of New Accounting Software among all departments - Present audit to Finance Committee by July meeting and approved by the board in August

V. PLANNING/CAPITAL IMPROVEMENTS & REVIEW HGF ARCHITECTURAL PHASING/STUDY ANNUAL COSTS 50th Anniversary: Turning Challenges into OPPORTUNITIES! - Jackson Building technology improvement/screens/projectors/ “special effects” - Measure success of new program space in lower level of Buell Children’s Museum - Measure success of new “Sensations” area in BCM Advance multi-year plan for exhibits and the Learning Center - Summer exhibits in place for 2021/ Explore exhibits beyond 2023

For Our Future Children Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023...................................................................................YEAR 2021 Continue relationship building, endowment enhancements and planned giving - Continue Arts Center Sponsored Learning Tours: 2021 Italy-Da Vinci Maintain Donor Relations - Measure success of Buell “Baby” Wall donors, Giving Circle

VI. COMMUNITY PARTNERSHIPS/BUILD AND STRENGTHEN Chamber, Latino Chamber, PCC, CSU, City/County Library, PEDCO and others - PCC & CSU-P programs, Library, PCC supporting exhibits, Junior League, Retirement homes, Conv. Center

VII. GOVERNMENTAL RELATIONS/BUILD A POLITICAL AGENDA Increase Annual Funding allowance from the County - Measuring success of County Funding/seek $625,000+ COLA in 2022 budget - Establish timeframe and sources for public & private funding-Explore bonding options? +Supporting Business Plan - Special line item requests from City & County to support Da Vinci Exhibit

Maintain relationships with City, County/Lease Operating Agreement - Deliver 2020 Cultural & Economic Impact Statement by March/April 2021-Publicly to PEDCo, County and City - Maintain line item in the City budget with a COLA - Keep County Commissioners, City & State Legislators informed

Inspire Engage Create Learn

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023

SANGRE DE CRISTO ARTS CENTER 5 YEAR PLAN SETTING UP THE ARTS CENTER FOR THE NEXT 50 YEARS

YEAR 2022........................................................................ 50TH ANNIVERSARY! I. BOARD DEVELOPMENT

Conduct annual retreat and secure a facilitator - January 2022 - Review multi-year performance plan, previous year’s Cultural & Economic Impact Statement - 50th anniversary plans/Planned Gift Campaign for all former & existing board members - Launch Arts District or a Mill Levy with Zoo as a partner - Leadership succession plan Continue to re-engage former board members with special events-Send out 2020 Audit - Planned Giving strategy, Sponsors/Former Board Members Event w/“2022 Exhibit” in September 2022 Capital Campaign Progress Communications Strategy - Increase # of Trustees of Distinction - Capital campaign Measure progress and refine Case Statement MEASURE engagement: Arts Associates, Young Professionals (YPAC) and volunteers - Arts Associates, Wednesday Weeders for grounds, Young Professionals Arts Council (YPAC), Tracking hours

II. STAFF DEVELOPMENT/STAFFING Improve staff organization/continue to prioritize staffing needs Seek out staff development opportunities & benefits - Create Staff Team Building Day #2 - “Are we all that we can be?”

III. PROGRAMMING/MARKETING 50th Anniversary Programs - Children’s Playhouse Theatre Series Fully underwritten/Pay-As-You-Can Conduct a Community Needs Study Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023....................................................................................YEAR 2022 Launch 2 Completely New Programs - Measure progress & enhancements of monthly sensory-friendly days at Buell Children’s Museum - Progress on Café vendor in the Buell Children’s Museum/revenue-sharing structure - Summer Exhibit planning beyond 2024 Marketing efforts - New marquee advertising: 10% increas - Quarterly MOSAICs

IV. FINANCES Create plans to increase rentals, membership, sponsorships, admission cost, 50th Anniversary - Budget for 50th Anniversary - Plan to increase membership by 5% - Increase rentals 5% - Continue “Paint It Forward” % for the Arts Center with Local Businesses - Sponsorships & Grants (CEO’s Dev. Plan) Goal 5% from previous year - Increase gifts to Endowment/discuss realistic % increase Strategic Financial Management Plan: - Monthly Financials - Review and update Cash Register Software for Gift Shops, Bar, Liquor Room, Front Desk - Review effectiveness and improve Accounting Software among all departments - Present audit to Finance Committee by July meeting and approved by the board in August

V. PLANNING/CAPITAL IMPROVEMENTS & REVIEW HGF ARCHITECTURAL PHASING/STUDY ANNUAL COSTS efine Annual Operating Costs Study Da Vinci Themed Summer/Fall for Pueblo County - Selling the overall SDC Campus Plan - Plan for income reductions as campus renovations begin and spaces go “off-line” Advance multi-year plan for exhibits and the Learning Center - Summer exhibits in place for 2023 & 2024/ Explore exhibits beyond 2025

For Our Future Children Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023....................................................................................YEAR 2022 Continue relationship building, endowment enhancements and planned giving -Continue Arts Center sponsored Learning Tours - 2022 Maintain Donor Relations - Build on the successof Buell “Baby” Wall donors, Giving Circle

VI. COMMUNITY PARTNERSHIPS/BUILD AND STRENGTHEN Chamber, Latino Chamber, PCC, CSU, City/County Library, PEDCO and others - PCC & CSU-P student programs, Library, PCC supporting Summer exhibit, Junior League, Retirement homes

VII. GOVERNMENTAL RELATIONS/BUILD A POLITICAL AGENDA Increase Annual Funding allowance from the County - Measuring success of County & Private Funding/seek 5% increase+ COLA in 2023 budget - Measure public funding; explore Bonding options? - Special line item requests from City & County to support Da Vinci Exhibit Maintain relationships with City, County/Lease Operating Agreement - Deliver 2021 Cultural & Economic Impact Statement by March/April 2022 Publicly to PEDCo, County and City - Maintain line item in the City budget with a COLA - Keep County Commissioners, City & State Legislators informed

Inspire Engage Create Learn

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023

SANGRE DE CRISTO ARTS CENTER 5 YEAR PLAN SETTING UP THE ARTS CENTER FOR THE NEXT 50 YEARS

YEAR 2023........................................................................ I. BOARD DEVELOPMENT

Conduct annual retreat and secure a facilitator - JANUARY 2023 -Review multi-year performance plan, previous year’s Cultural & Economic Impact Statement -Reflect on 50th Anniversary/Now the NEXT 50 YEARS! -Launch Leadership succession plan Continue to re-engage former board members with special events & Send out 2022 Audit -Planned Giving strategy, Sponsors/Former Board Members Event w/“2023 Exhibit” in September 2023 Launch Capital Campaign - Increase # of Trustees of Distinction - Capital campaign Measure progress and refine Case Statement Measure engagement: Arts Associates, Young Professionals (YPAC) and volunteers - Arts Associates, Wednesday Weeders for grounds, Young Professionals Arts Council (YPAC) Tracking hours

III. PROGRAMMING/MARKETING Build on existing programming across the Arts Center Explore programs, partners and serve community needs vetted through board committees - Evaluate 2 new programs launched - Did they work? Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023....................................................................................YEAR 2023 - Measure progress & enhancements of monthly sensory-friendly days at Buell Children’s Museum -Progress on Café vendor in the Buell Children’s Museum/profit-sharing structure -Summer exhibit planning beyond 2025 Marketing efforts - Marquee advertising: 10% increase - Quarterly MOSAICs including seeking ads

IV. FINANCES Create plans to increase rentals, membership, sponsorships admission cost, other - Plan to increase membership by 5% - Increase rentals 5% - Continue “Paint It Forward” % for the Arts Center with Local Businesses - Sponsorships & Grants (CEO’s Dev. Plan) Goal 5% from previous year - Increase gifts to Endowment/discuss realistic % increase Strategic Financial Management Plan: - Monthly Financials - Review & update Cash Register Software for Gift Shops, Bar, Liquor Room, Front Desk - Review effectiveness & improve Accounting Software among all departments - Present audit to Finance Committee by July meeting and approved by the board in August

V. PLANNING/CAPITAL IMPROVEMENTS & REVIEW HGF ARCHITECTURAL PHASING/STUDY ANNUAL COSTS efine annual Operating Costs Study Review plan for income reductions as campus renovations begin and spaces go “off-line” Advance multi-year plan for exhibits and the Learning Center - Summer exhibits in place for 2024 & 2025/ Explore exhibits beyond 2026 Continue relationship building, endowment enhancements and planned giving

For Our Future Children Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SDC 5-YEAR PLAN | 2019-2023....................................................................................YEAR 2023 - Continue Arts Center sponsored Learning Tours Maintain Donor Relations - Build on the success of Buell “Baby” Wall donors, Giving Circle

VI. COMMUNITY PARTNERSHIPS/BUILD AND STRENGTHEN Chamber, Latino Chamber, PCC, CSU, City/County Library, PEDCO and others -PCC & CSU-P student programs, Library, PCC supporting Summer exhibit, Junior League, Retirement homes - Identify New Partners

VII. GOVERNMENTAL RELATIONS/BUILD A POLITICAL AGENDA Plan Sky Bridge connectivity with the rest of Downtown Pueblo Increase annual funding allowance from the County - Measuring success of County & Private Funding/seek 5% increase + COLA - Update Business Plan - Measure Public funding and the return on the Public’s Investment Maintain relationships with City, County/ Review Lease Operating Agreement - Deliver 2022 Cultural & Economic Impact Statement by March/April 2023-Publicly to PEDCo, County and City - Maintain line item in the City budget with a COLA - Keep County Commissioners, City & State Legislators informed

Inspire Engage Create Learn

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

APPENDIX

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

SANGRE DE CRISTO ARTS & CONFERENCE CENTER ORGANIZATIONAL CHARTS BOARD AS OF 6/5/2019 STAFF AS OF 6/5/2019

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

21 A

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

Curator of Visual Arts Liz Szabo +Program Committee

Collections Manager LuDel Walter +Program Committee

Gallery Coordinator Rick Morris

Gallery Attendant Ann Nix

Docents

Curator of Learning Zachary Friberg +Program Committee

Associate Curator of Learning Vacant

Assistant Curator of Learning Hilary Gibson +Membership Committee

Assistant Curator of Learning Katie Walker

Buell Learning Assistants

CJ Richards Jasmine Watson

Karen Taylor Maureen Braun

Tianna Walsh

School of Dance Artistic Director Nan Wainwright

School of Dance Administrative Assistant Ashley Minnich

Dance Instructors

Annie Carlson

Brittany Nunes

Katie Farmer

Nancy Tracy

Sydney Gettel

BOARD OF TRUSTEES

Chief Executive Officer Jim Richerson + All Committees

Director of Finance & Administration Trish Rooney +Board & Finance Committees

Accounting Technician Rosalie PerezMontes

Senior Accountant Sonia Sedillo

Musician-in -Residence Aavalajn Wiggins

Potters-in-Residence Jarrett Pottery Alyssa & Shane Jarrett

Instructors Docents

Office Supervisor/ Planning Kathy Berg

Director of Marketing & Development Alyssa Parga +Anniversary, Board, Development, Program Committees

Development Officer Stephanie Ortega +Development Committee

Graphic Designer Ally Sullivan

Event & Marketing Manager Bob Campbell +Anniversary Committee

Member & Visitor Services Supervisor Adele McCanless +Anniversary & Membership Committees

Welcome Center & Gift Shop Coordinator Jade Lopez

Front Desk Attendant Natalie Hatcher

Photographer-inChris May

Residence

Director of Facilities & Conference Services Maria Todisco +Anniversary & Facilities & Planning Committees

Security Nick Parker +Facilities & Planning Committee

Facilities Maintenance Manager Don Geanetta +Facilities & Planning Committee

Facilities Supervisor Marcy Skerjanec

Facilities Technician Kolby Oehm

Facilities Technician Alisa Bell

Facilities Temp Team

Theater Technician Vacant

KB 6/0519

Contractors Bartenders Event Security Stage Crew

ECONOMIC & CULTURAL IMPACT STATEMENTS

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

22B

Sangre de Cristo Arts & Conference Center

CULTURAL & ECONOMIC IMPACT STATEMENT 2018 “In essence, through management of resources, SDC is able to convert those resources into a 1000% return, or ten times the local government investment. Arts are also shown to be important attractors for creative segments, and can be a critical tipping point in attracting other industries. We must exercise caution to not underestimate the potential economic contributions made possible by SDC.” - Michael W. Wakefield, Ph.D.†

IN 2018...

$7.19 MILLION

That’s the impact your Arts Center had in the Pueblo community in 2018 alone. A 960% return on investment of public funds!*

1,939

262

generous donors invested in a brighter future for Southern Colorado through arts education and programming.

of these donors are from outside Pueblo County – donating a total of $178,636.70 to the Arts Center.

The Arts Center had

141,620

visits from those united in appreciating, elevating, and engaging in creativity in all its forms.

$996,763

was spent on goods & services in Southern Colorado.

Up 10% from 2018

27 board members, 58 professional staff, and 150 artists, teachers, and other contracted support staff demonstrated excellence and leadership within the Pueblo community. Gross payroll was $1,134,979.

Through the generosity of

19 sponsors, 5,219 people visited the Arts Center on free community days.

Readers of The Pueblo Chieftain voted the Arts Center and its programming

Best Museum, Public Art, Art Gallery, Festival, and School of Dance.

DRIVING TOURISM In 2018, guests visited the Arts Center from 150 Colorado cities, 45 states and territories, and 8 countries. States and territories represented were Alabama, Alaska, Arizona, Arkansas, California, District of Columbia, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, New York, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. And the countries of Argentina, Canada, France, Germany, Italy, Mexico, Poland, Puerto Rico, and Ukraine.

TESTIMONIAL “My Pueblo pride is a part of me that I have held onto since before I moved away for the first time more than 15 years ago. From the only dish that qualifies as green chile to the unique and vibrant culture that make up the city, I love telling people all about Pueblo. One place I am most grateful for while growing up is the Sangre de Cristo Arts and Conference Center. I recently applied to and was accepted as an artist-in-residence at the Corvallis Arts Center in Oregon. The Sangre de Cristo Arts Center encouraged me by building a foundation to appreciate art as well as create my own work. Donna Stinchcomb demonstrated the importance of art daily and introduced me to inspirational artists like John Wilbar and Joni Giarratano...Getting to work at the Buell Children’s Museum taught me the magic in art and how to keep it alive. My culture has an artistic cornerstone because of the Sangre de Cristo Arts Center of Pueblo.” - Kimberly Brainard Long, The Pueblo Chieftain, December 20, 2018 * A Strategic Analysis and Recommendations of the Sangre de Cristo Arts and Conference Center, The Healy Center Hasan School of Business, Colorado State University-Pueblo, January 8, 2019 § The Economic Impact of Children’s Museums: The Ripple Effect of Spending, ACM Trends #2.,

October 9, 2018

† Letter to Pueblo City Council Members from Michael W. Wakefield, Ph.D., September 25, 2018 # Independentsector.com

** 10mm Outdoor LED Specification Sheet, Prismview, 2018

FAST FACTS In 2018, the Arts Center... •

had 175 art pieces from its permanent collection on loan in Pueblo – that’s an estimated value of $375,000 on display year-round in public facilities

•

had 60 volunteers give 4,912 hours of their time, a value of $121,277#

•

offered 175 classes for adults and children, 16% of participants were on scholarship

•

had over 7,000 field trip participants

•

displayed 25 fine arts exhibits featuring 540 artists, 215 of which were Southern Colorado residents

•

earned $50,000 of private funding for infrastructure improvements - including a new marquee board which uses 60% less energy than its predecessor**

Did you know? •

The Sangre de Cristo Arts Center holds more than twice the number of events, and hosts 2.28 times more visitors than similar institutions.*

•

On the national scale, for every job supported by children’s museums’ operating expenditures, the same dollar amount these institutions spend on salaries supports 1.29 jobs outside museum walls. For instance, a museum with about $1,100,000 in compensation expenses for its own employees supports about ten jobs outside the museum.§

A LOOK AHEAD Fall 2019: Holiday 2019:

Nobuntu: Female African Dance & Vocal Ensemble Winter Wonderland Ansel Adams: Fragile Waters

Summer 2020:

(being negotiated)

Summer 2021:

Glass of Chihuly & Mongrain

Summer 2022:

Da Vinci Machines & Robotics

Sangre de Cristo Arts and Conference Center | 210 N. Santa Fe Ave. Pueblo, CO | www.sdc-arts.org | (719) 295-7200

SDCMD032019

Sangre de Cristo Arts & Conference Center

2017

CULTURAL & ECONOMIC IMPACT STATEMENT

“The culture of any country is gauged first by its progress in art.” - Ignacy Jan Paderewski

STEWARDS OF ART

The Arts Center stewards a collection estimated at nearly $10 million in value and grows each year

DRIVING TOURISM The Arts Center had 127,421 visitors in 2017

COMMUNITY EVENTS CENTER

$55K worth of new tables, chairs, and carpeting were installed in the Jackson Conference Center

COMMUNITY PARTNERS include Bent’s Old Fort, United Way Mentors, Pueblo Storytellers, MyLife, Kaiser Permanente, PCC, CSU-Pueblo, and more

“

ARTS EDUCATION Over 10,000 participants visited the Arts Center on field trips in 2017

ECONOMIC ENGINE

More than 500 donors from outside of Pueblo contributed over $207,000 to the Arts Center

NATIONAL IMPACT

Children’s museums rank 2nd among museumrelated attractions in their ability to attract ethnically and culturally diverse audiences **

“I think the Sangre de Cristo Arts Center is just a beautiful facility, and they get some incredible artists there. Some of the big names they draw are so impressive. Just to be associated with that in any way is really an honor for me.” - Amy Winter of Denver, Colorado (excerpt from the Pueblo Chieftain)

PUBLIC ARTS & COMMUNITY ACCESS

$13.7 BILLION

The total financial impact of arts and culture on the economy in Colorado †

COMPETITIVE IN OUR FIELD

DRIVING TOURISM

The Arts Center had 127,421 visitors in 2017, equaling 115% of Pueblo’s population. To compare, the Children’s Museum of Denver at Marsico Campus sees 568,000 visitors annually - about 83% of Denver’s population.

Guests visited the Arts Center from 45 states and 120 Colorado Cities/Towns in the last year.

Compared to the Colorado Springs Fine Arts Center’s 3,000 memberships in a population of 416,000, the Sangre de Cristo Arts Center is doubly effective in penetrating its community of 110,000 when you consider its 2,000 memberships.

ECONOMIC ENGINE The Center employed 32 full time, and 32 part time employees, and 133 artists, teachers, and other contracted support staff. The Center’s gross payroll was $1,069,220. Another $833,000 was spent on goods & services in the Pueblo community. This year, Arts Center volunteers contributed 4,493 hours of their time. At minimum wage, that totals $41,785. According to the Independent Sector, the actual value is closer to $105,855!

SPECIAL PROGRAMS Over 700 preschoolers and guardians attended “Get Ready for School at the Buell,” an annual program in partnership with both Pueblo school districts emphasizing early education. Admission was just $1.

Over the four-month period during which the Rembrandt Etchings were displayed, 60% of visitors to the Helen T. White Galleries were from outside of Pueblo. Arts Center visitors hailed from the countries of Canada, China, Finland, France, Germany, Italy, Malaysia, Mexico, and Saudi Arabia.

COMMUNITY EVENTS CENTER Over 270 private events were held at the Arts Center in 2017, hosting over 53,000 guests. $55,000 worth of new tables, chairs, and carpeting were installed in the 6,800 sq. ft Jackson Conference Center.

PUBLIC ARTS & ACCESS Through the generosity of 19 sponsors, over 4,000 people visited the Arts Center on free community access days in 2017. As a Blue Star Museum, the Arts Center offers free admission to the nation’s active-duty military and their families Memorial Day through Labor Day. Through partnering with the Pueblo Library District, families could check out a free “Family Pass” to the Arts Center & Buell Children’s Museum to use for a week between Memorial Day and Labor Day.

Live performing arts events offered by the center grew by 70%; generating an equal rise in attendance.

Readers of the Pueblo Chieftain voted the Arts Center and its programming Best Public Art, Art Gallery, Museum, Wedding Venue, and School of Dance in 2017.

ARTS EDUCATION

NATIONAL IMPACT

Last year saw 11,700+ participants who visited the Center for education classes. Over 10,600 participants visited the Arts Center on field trips last year - up 30% from 2016! Schools came from Rocky Ford, Ft. Carson, Lamar, Calhan, Colorado Springs and Raton, NM to name a few. The Sangre de Cristo School of Dance hosted free master classes to the dance community led by the Grand Russian Ballet and MOMIX dance companies.

STEWARDS OF ART The permanent collection grew by 45 pieces (approx. $19,000 in value) in 2017. The Center stewards a collection estimated at nearly $10 million in value and growing. *American Alliance of Museums **Association of Children’s Museums † National Assembly of State Arts Agencies

The total economic contribution of museums in 2016 amounted to more than $50 billion in GDP, 726,200 jobs, and $12 billion in taxes to local, state, and federal governments.* Children’s museums rank second among museum-related attractions in their ability to attract ethnically and culturally diverse audiences and address the developmental needs of young children.**

A LOOK AHEAD The 2019 summer exhibit is “Luster: Realism & Hyperrealism in Contemporary Automobiles and Motorcycle Painting.”

Les Ballets Trockadero is slated for 2018-19 Center Stage Series. For inquiries: Alyssa Parga, Director of Marketing & Development| alyssa@sdc-arts.org

The Sangre de Cristo Arts & Conference Center creates artistic learning experiences for everyone. Sangre de Cristo Arts & Conference Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | www.sdc-arts.org

Sangre de Cristo Arts & Conference Center

2016 CULTURAL & ECONOMIC IMPACT STATEMENT STEWARDS OF ART The Arts Center stewards a collection estimated at nearly $10 million in value, and a portion is on display at the Arts Center and throughout the community year-round.

The permanent collection grew by 280 pieces in 2016 to over 2,750 artworks.

SCHOOL OF ARTS More than 1,400 children and adults enrolled in classes and camps at the Center in 2016. Almost 8,000 participants visited the Arts Center on field trips last year.

Offerings included summer camps, jewelry, culinary, violin, and more. Field trips were from the cities of La Junta, Lamar, & Monte Vista to name a few.

DRIVING TOURISM Guests visited the Arts Center from 48 states and the countries of Canada, England, Ethiopia, France, Germany, Mexico, and Spain.

The Arts Center had 120,000+ visitors in 2016.

In 2016, Pueblo hosted the “Ansel Adams: Classic Images” exhibition of works from the collection of the photographer’s daughter.

Over 60% of visitors to the Helen T. White Galleries during the “Ansel Adams: Classic Images” exhibition were from out-of-town.

COMMUNITY EVENT CENTER Over 200 private events were held at the Arts Center this year, hosting over 31,000 guests.

“We felt welcomed and accommodated. Our ideas and needs were taken into consideration.”

ECONOMIC ENGINE

“

The Center employed 30 full time, 43 part time and 91 contracted employees in 2016. Over $984,600 was spent on goods & services in the community in 2016.

The Arts Center’s 2016 gross payroll was $1,273,042. From print shops to landscaping, the Center tries to keep it local.

Funds and resources contributed from outside of Pueblo County totaled over $190,600!

Nearly 300 donors from outside of Pueblo County contributed in 2016.

“Art is fundamental, unique to each of us…Even in difficult economic times especially in difficult economic times - the arts are essential.” –Maria Shriver, Award-Winning Journalist and Author

“

“The Arts and Sciences, essential to the prosperity of the State and to the ornament of human life, have a primary claim to the encouragement of every lover of his country and mankind.” –George Washington

SPECIAL PROGRAMS “Get Ready for School at the Buell” is an annual program in partnership with Pueblo City Schools emphasizing early education. The Arts Center presents three series of performances to the public, from Center Stage to Children’s Playhouse Theatre, to the new Regional Series which showcases varied types of talent from the Front Range.

First-day-of-school jitters are removed through transforming the Museum into a pop-up school environment. Each Children’s Playhouse performance has a meet and greet or talk-back session after the show to encourage interaction with young audience members.

PUBLIC ARTS & COMMUNITY ACCESS Through the generosity of 30 sponsors, nearly 6,000 people visited the Arts Center on free days. The Arts Center’s 2016 National Arts & Humanities Month project was the “Wall of Wonder” mural by local artist Mat Taylor. Readers of the Pueblo Chieftain voted the Arts Center and its programming Best Public Art, Art Gallery, Museum, Wedding Venue, School of Dance, and Volunteer Opportunity.

“I have 3 kids...and they all had a blast when we visited... The Family Free Day was a great opportunity for us...” -Erin F. Named one of “Twenty-Five Best New Murals in Colorado, 2016” by Denver Westword Awarded “Best Museum” for 10 years in a row!

A LOOK AHEAD “An infectiously joyful celebration of music and dance.” - The New York Times Experience the history of original “Imagimation: 100 Years of Animation from Around animation artwork since the the World” coming Summer 2018. creation of this magical art form! Celebrating Southern Colorado’s “Luster: Realism and Hyperrealism in love affair with cars and motorContemporary Automobile and Motorcycle Paintcycles, which has expressed itself ing” coming Summer 2019. culturally and artistically. Flamenco Vivo with Carlota Santana is slated for the 2017-2018 Center Stage Series.

2022 marks the 50th Anniversary of the Arts Center. Together with HGF Architects and civic leaders, the Arts Center will become a 21st Century learning center, enriching the community for many years to come.

This project aims to ensure the health and vitality of arts and culture in our community for the benefit of future generations.

The Sangre de Cristo Arts & Conference Center creates artistic learning experiences for everyone. For inquiries: Alyssa Parga, Director of Marketing & Performing Arts | alyssa@sdc-arts.org Sangre de Cristo Arts & Conference Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | www.sdc-arts.org

ECONOMIC & CULTURAL IMPACT STATEMENT COMMUNITY PARTNER CHARACTER AND LEADERSHIP DEVELOPMENT GOVERNMENT COLLABORATOR GROWING HEALTH AND LIFE SKILLS ARTS AND CULTURE APPRECIATION EDUCATIONAL INNOVATORS PUBLIC AND COMMUNITY ACCESS SUPPORTING LOCAL ARTISTS NURTURING A LOVE FOR LEARNING ARTISTIC VENUE FOR CELEBRATIONS 210 N Santa Fe Avenue | Pueblo, CO 81003 | 719.295.7200 | www.sdc-arts.org

2015 SNAPSHOT

How is the Sangre de Cristo Arts & Conference Center an economic engine in the community? • • •

The Sangre de Cristo Arts Center employed 19 full time, 25 part time, and 61 contracted labor professionals with an annual gross payroll of $955,000; and spent $829,000 on goods and services in the community. The Sangre de Cristo Arts Center had over 1,700 individual donors in 2015. Of these, over $180,000 was from 270 funders outside of Pueblo County. The Sangre de Cristo Arts Center received a planned gift valued at $1.2M from Charles & Jeanette Gilchrist White based out of Chicago, IL. The gift includes more than 100 pieces of art from over 35 artists.

The Whites will supplement the collection with a monetary gift of $500,000 to sustain the care of the collection.

How does the Sangre de Cristo Arts & Conference Center improve the community? • • •

•

In 2015, the Sangre de Cristo Arts Center offered more than 375 classes, 7 camps, and 149 workshops to the public, with 1,220+ students enrolled in classes throughout the year, and over 7,700 students and chaperons who visited during school field trips. The Sangre de Cristo Arts Center hosted Family Nights for local schools and free access opportunities throughout the year, like First Friday Artwalks and We Create Day in partnership with Junior League of Pueblo. The Sangre de Cristo Dancerz is a resident company of the Sangre de Cristo Arts Center composed of differently-abled individuals. The Dancerz rehearse and perform annually under the artistic direction of Robert J. Doyle as part of the Sangre de Cristo Arts Center’s School of Dance. The Sangre de Cristo Arts Center stewards a Permanent Collection of over 2,500 pieces of artwork for the community, which grew by 43 pieces in 2015.

How does the Sangre de Cristo Arts & Conference Center drive tourism in Pueblo? • •

In 2015, the Sangre de Cristo Arts Center had 125,000 visitors from over 90 Colorado Cities, 39 States, and the countries of Australia, Japan, Mexico, Ukraine, Finland, Scotland, Pakistan, Philippines, and the Netherlands. Over 200 private events were held at the Sangre de Cristo Arts Center, including weddings receptions and business meetings, hosting over 31,500 guests.

What makes the Sangre de Cristo Arts & Conference Center a community partner? •

•

In 2015, the Sangre de Cristo Arts & Conference Center partnered with Pueblo Community College, CSU-Pueblo, Memorial Hospital in Colorado Springs, Pueblo Humane Society, Steelworks Museum, The Greater Chamber of Commerce, The Latino Chamber of Commerce, Goodnight School, Parkview Medical Center, Pueblo City-County Library District, Junior League of Pueblo, The McClelland School, and more. A number of early education programs were offered, including preschool camps, Art Start programming, “Cavities Get Around,” Wonderful Wednesday Performances, “Get Ready for School at the Buell”, “The Amazing Food Detective”, outreach at the Week of the Young Child Fun Fair, PBS Kids Fun Fest, and with Irving Elementary School. The “Made in Pueblo” exhibition in partnership with PEDCO exhibited items made and produced by local companies as a nod to the Steelworks Museum’s “Year of the Worker” campaign which encouraged organizations in Pueblo to spotlight those who work hard day in and day out as everyday heroes. The companies featured included Atlas Pacific Engineering, Ingersoll Rand/ Trane, Kirby Fiberglass, Agalite Bath Enclosures, McDonnell Douglas, Evraz, Haddonstone, Vestas, Boeing, Kurt Manufacturing, Trinity Packaging, FRE Composites, pewag, and Walter’s Brewery.

FUN FACTS

EXHIBITIONS 75% of the Sangre de Cristo Arts Center exhibitions feature local artists.

The Wednesday Weeders volunteer group planted 3,317 bulbs at the Sangre de Cristo Arts Center during the fall of 2015, which were donated by Keep Pueblo Beautiful.

(Source: National Value of Volunteer Time, http://independentsector.org/)

(Source: Top 10 Reasons to Support the Arts in 2014, Posted by Mr. Randy Cohen, Mar 20, 2014)

“Get Ready for School at the Buell” helped prepare children by using the museum as a “pop-up school” and model environment. The week long festival assisted Pueblo families with the transition to preschool and Kindergarten in a safe and fun learning environment—relieving children’s (and parents’) apprehension about the first day of school. Resource tables in the museum during the week were hosted by Pueblo City Schools, Head Start, Children First, Catholic Charities, SECAHEC, The McClelland School, and Pueblo City-County Library.

“Mayors understand the connection between the arts industry and city revenues. Arts activity creates thousands of direct and indirect jobs and generates billions in government and business revenues. The arts also make our cities destinations for tourists, help attract and retain businesses, and play an important role in the economic revitalization of cities and the vibrancy of our neighborhoods.” -Philadelphia Mayor Michael A. Nutter President, The United States Conference of Mayors 2012–2013

For more discussion, contact: Alyssa Parga, Marketing Manager alyssa@sdc-arts.org

VOLUNTEERS The Sangre de Cristo Arts Center had 125+ committed volunteers donate over 4,760 hours of their time, valued at $109,870*

2015 AWARDS • Best Public Art (Gold) • Best Museum (Gold) • Best Wedding Venue (Gold) • Best Art Gallery (Silver)

Attendees at nonprofit arts events spend $24.60 per person, per event, beyond the cost of admission on items such as meals, parking, and babysitters. Attendees who live outside the county in which the arts event takes place spend twice as much as their local counterparts—valuable revenue for local businesses and the community.

210 N. Santa Fe Avenue | Pueblo, CO 81003 (719) 295-7200 | www.sdc-arts.org

COMMUNITY PARTNERSHIPS CHARACTER AND LEADERSHIP DEVELOPMENT GOVERNMENT COLLABORATORS GROWING HEALTH AND LIFE SKILLS ARTS AND CULTURE APPRECIATION EDUCATIONAL INNOVATORS PUBLIC AND COMMUNITY ACCESS SUPPORTING LOCAL ARTISTS NURTURING A LOVE FOR LEARNING ARTISTIC VENUE FOR CELEBRATIONS

2014 ECONOMIC & CULTURAL IMPACT STATEMENT

“The Buell Children’s Museum is such a wonderful place for children to learn by exploring and experiencing... It is a museum where children CAN TOUCH and learn by becoming part of the exhibits.” -Heidi R. “Superb. I am so pleased the (Picasso, Matisse, Chagall) works were brought to Pueblo! Well done.” -Guest Comment Card

For more discussion, contact : Alyssa Parga, Marketing Manager alyssa@sdc-arts.org

In 2014, the Sangre de Cristo Arts & Conference Center: •

Employed 23 full time, 34 part time, and 94 contracted labor professionals with an annual gross payroll of $1.3M;

•

Spent $967,574 on goods and services in our community;

•

Served over 135,000 visitors, 30% of whom are from out of town;

•

Of these visitors, 16,000 were students and chaperones who participated in tours of the Helen T. White Galleries, Buell Children’s Museum, Community Outreach, or attended a performance; Offered 370+ classes to the public with topics such as photography, weaving, culinary arts, printmaking, stained glass, painting, pottery, dance, guitar, acting, and more;

•

Awarded 30+ scholarships for youth participating in arts education programming;

•

Curated 30 fine art shows throughout seven galleries for the public, featuring 100+ local artists;

•

Curated 4 interactive, hands-on exhibits for children ages 1-100 through the Buell Children’s Museum;

•

Recieved over 2,500 individual contributions of financial support through donations or memberships;

•

Cared for an art collection of 2,100+ pieces proudly shared with the public;

•

Was recognized by The Pueblo Chieftain as Best Museum, Buell Children’s Museum/Sangre de Cristo Arts Center (Gold), Best Art Gallery, Sangre de Cristo Arts Center (Gold), and Best Public Art, Jackson Sculpture Garden at the Sangre de Cristo Arts & Conference Center (Gold);

•

Collaborated toward energy efficiency with Blackhills Energy and Pueblo County, resulting in an estimated energy savings of 5,000 kWh per month;

•

Supplied local hospitals and universities with Performing Arts brochures to include in skilled labor recruitment packets;

•

Supported five early education organizations with programming to build literacy skills through the Art Start program;

•

Had 170+ committed volunteers who donated 5,160 hours of service, equivalent to $129,516*;

•

Successfully partnered public and private enterprises through collaboration with Pueblo County and the City of Pueblo;

•

Partnered with local colleges, schools, businesses and libraries. Work-force development opportunities are provided for early childhood care providers and public education teachers. Early Childhood and Arts majors work in the museum and go on to careers in those fields. Work study students perform as education assistants and become teachers, pediatric nurses, and counselors;

•

Local partners included Pueblo City-County Library District, Pueblo Community College, Colorado State University – Pueblo, KRCC.org, Irving Elementary, The McClelland School, Pueblo Latino Chamber of Commerce, and the Greater Pueblo Chamber of Commerce;

•

Offered paid and in-kind opportunities for professional performing and visual artists and arts educators. Artists on local, state and national levels have a venue at which to market, sell and perform.

*Source: http://independentsector.org/volunteer_time

The

Picasso

Matisse

Chagall

exhibit in the White Gallery played host to visitors from the states of Alabama, Arizona, California, Dist. Of

Columbia,

Florida,

Georgia,

Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan,

Minnesota,

Missouri,

Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Tennessee, Texas, Wisconsin, and countries

Argentina,

Australia,

Canada,

Korea,

the

and

Japan,

Philippines

the month of October alone.

On a national scale, museums are economic engines: • Museums employ more than 400,000 Americans and directly contribute $21 billion to the U.S. economy each year. They generate billions more through indirect spending by their visitors. • 78% of all U.S. leisure travelers participate in cultural or heritage activities. These travelers—including visitors to museums—spend 63% more on average than other leisure travelers. Further, the U.S. Bureau of Economic Analysis has found that arts and cultural production constitute 3.2 percent of the nation’s entire economy, a $504 billion industry. • The nonprofit arts and culture industry annually generates over $135 billion in economic activity, supports more than 4.1 million full-time jobs and returns over $22 billion in local, state and federal tax revenues. • Governments that support the arts see an average return on investment of over $7 in taxes for every $1 that the government appropriates.

HGF ARCHITECTS, INC. MASTER PLAN

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

23 C

A STRATEGIC ANALYSIS & RECOMMENDATIONS OF THE SANGRE DE CRISTO ARTS & CONFERENCE CENTER PREPARED BY: THE HEALY CENTER HASAN SCHOOL OF BUSINESS COLORADO STATE UNIVERSITY-PUEBLO

Sangre de Cristo Arts Center | 210 N Santa Fe Ave | Pueblo, CO | 719.295.7200 | sdc-arts.org

BOARD APPROVED 5/1/19

24 D

A STRATEGIC ANALYSIS AND RECOMMENDATIONS OF THE SANGRE DE CRISTO ARTS AND CONFERENCE CENTER January 8, 2019

Prepared by: The Healy Center Hasan School of Business Colorado State University-Pueblo

Generously made possible by:

TABLE OF CONTENTS SECTION 1: EXECUTIVE SUMMARY & GOALS

SECTION 2: ANALYSIS

STRATEGIC ANALYSIS INTRODUCTION EXTERNAL ENVIRONMENT PORTERâ&#x20AC;&#x2122;S GENERIC STRATEGIES COMPARISONS WITH OTHER MUSEUMS PERCEPTUAL MAP

4 4 4 8 10 14

SECTION 3: EVALUATION

DRIVING FORCES DISTINCTIVE COMPETENCIES SWOT ANALYSIS EVALUATION MATRICES INTERNAL ENVIRONMENT/VALUE CHAIN ANALYSIS STRATEGIC ALTERNATIVE DEVELOPMENT SPACE ANALYSIS

15 17 18 19 22 24 25

SECTION 4: STRATEGIES & RECOMMENDATIONS

GOALS & STRATEGIES FINANCIAL, PERFORMANCE METRICS ANALYSIS & RECOMMENDATIONS FINANCIAL AND PERFORMANCE METRICS OVERVIEW DATA

29 32 35

SECTION 5: APPENDICES

HGF COSTING UPDATE PRELIMINARY ECONOMIC IMPACT LETTER TO PUEBLO CITY COUNCIL BIOGRAPHIES REFERENCES

50 53 57 59 61

EXECUTIVE SUMMARY The Thomas V. Healy Center for Economic & Business Research and Services proposes this business/marketing study, based on months of research, evaluation, and analysis, for future planning of the Sangre de Cristo Arts Center. Assessment began the first quarter of 2018 of demographics, external and internal environments, analysis of procedures, and comparisons with other museums, this report offers several recommendations to ensure a thriving and sustainable future for the Sangre de Cristo Arts Center. Although the competitive market in southern Colorado’s arts and entertainment sector is highly competitive, the Sangre de Cristo Arts Center enjoys a significant edge, including an established positive reputation for more than 40 years, commands an extraordinary location at a primary entrance to downtown from I-25, appeals to Pueblo’s demographics effectively, and continues to receive millions of dollars’ worth of funding. However, other activities (ie: Colorado State Fair, street festivals) have a high impact on the Sangre de Cristo Arts Center’s program attendance. The Arts Center competes to serve Pueblo County’s population of over 160,000 people, who have options of visiting four well-known museums located in different parts of the city of Pueblo, and the proximity to Colorado Springs and Denver opens numerous alternatives for additional museums and entertainment. According to customer perception, the Sangre de Cristo Arts Center is the sole occupant among local attractions of the most desired position of the Strategic Position and Action Evaluation Matrix. This placement indicates the most amount of activities for the most competitive price, or in other words, represents the best value for the purchaser (see page 22). The study recognizes a possible weakness in surveying a modest number of senior citizens. This strategic plan will advise the Sangre de Cristo Arts Center’s annual Cultural and Economic Impact Statement and serve as a guide for the organization’s five-year performance plan. This report recognizes the master plan by Hurtig, Gardner, and Froelich Architects as an important interface for future planning of the Arts Center, and finds HGF Architects, Inc.’s recommendations consistent with most goals contained in this strategic plan. The set of recommendations set forth involve capital formation, revenue creation, facility renovations, and phased expansion. Action goals are published within this report, as perceived by this team to be most urgent, salient and immediately implementable. These goals are as follows (see page 29 for expanded items). ●

Goal 1: Immediate Need for more Program Space o Strategy 1: Finish the basement in Children’s Museum to increase space available for revenue production, at marginal cost.

●

Goal 2: Maximize advertising exposure o Strategy 1: Use largest, tallest, allowable signage to attract attention from I-25. LED screens can attractively advertise events. o Strategy 2: Create building features that attract attention: towers, spires, aesthetically pleasing, but attention-commanding structures.

●

Goal 3: Increase revenue through increasing number of members, increasing the price of memberships, increase admission price, and other considerations o Strategy 1: Target attendees, use gentle persuasion (not a hard sell), highlight benefits. o Strategy 2: Increase the cost of membership to be on a par with the Pueblo Zoo.

o o

Strategy 3: Study research supports a general admission increase from $8 to $10. Discussion with management indicates ideal timing for this is at the beginning of the summer exhibit that attracts the highest number of tourists. Strategy 4: Share membership lists with key partners such as the City Zoo. Consider creating a dual membership option, integrate zoo themes in the Children’s Museum, art at the City Zoo. Strategy 5: Enhance offerings and activities that make the Arts Center more attractive. Offer discounts not only to events, but for food and room rental. Offer member-only events. Provide backstage access to performers for premium memberships. Consider offering programming attractive to Senior Citizens, and possibly veterans. There is considerable overlap between these two groups, and a large portion of the Pueblo population receives government stipends. Making a stronger tie to “Pueblo – Home of Heroes” can be a productive positioning strategy. A capital campaign is the most logical approach at this time to create the capital needed for renovation, program expansion, and improved productivity, all leading to higher income from operations. Explore funding through bonding options with County and City.

●

Goal 4: Staffing assessments and salary market studies are needed. o Strategy 1: High turn-over in facilities staff must be addressed. There is a need to better understand the salary market in this area, and increase salaries to increase retention. o Strategy 2: There appears to be times when the Welcome Center Desks are overwhelmed. Consider more staffing in this area. o Strategy 3: There appears to be times when the exhibit staff is overwhelmed. Increased staffing in this area should be considered. o Strategy 4: There appears to be times when Buell Children’s Museum and Learning Center staff are overwhelmed. Increased staffing in this area should be considered.

●

Goal 5: Improve communications with schools, including PCC, CSU-Pueblo, and especially with D60 and D70. o Strategy 1: Establish protocol for contact and follow up. o Strategy 2: Meet with leaders of each district to determine how the Arts Center can enhance school district curricula. o Strategy 3: Partner with City Transit to provide transportation access for area students.

●

Goal 6: Provide expanded programs, offer higher-profile artists. o Strategy 1: Work with partners to create integrated events (Zoo, Steel Museum, Mtn. Park/Nature Center). Consider student involvement and program instruction with PCC and CSUP partnerships. Pursue grants to provide seed money to subsidize launch of program expansion. Ask benefactors to sponsor high profile artists. Set higher admissions to view most elite artists to maximize revenue. o Strategy 2: Invite successful former Puebloans to “give back” in the form of workshops to K-12 students.

●

Goal 7: Offer more revenue producing events, indoors, outdoors, off-campus. o Strategy 1: Offer more “block party” type of events, concerts, displays on campus, using indoor and outdoor facilities. o Strategy 2: Integrate themes from partners. Provide incentives to increase traffic flows at the Arts Center and partner facilities. o Strategy 3: Sponsor art display events in downtown and the community that bring awareness to the Arts Center. 4

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Goal 8: Take advantage of increased meeting and convention activity in downtown area. o Strategy 1: Partner with Convention Center to accommodate meeting and convention needs for larger conventions, or if they are overbooked. o Strategy 2: Work with City of Pueblo and Chamber of Commerce to develop a master list and shared website to promote meeting space availability.

●

Goal 9: Update physical plant, replace aged equipment, renovate. o Strategy 1: Use increased revenue streams from expanded programs. o Strategy 2: Ask City, County, State government to help in creative funding solutions. Examples: use a portion of lodger’s tax, ask PEDCO for support as a portion of payroll could qualify for primary jobs, seek creative industry funding from the state level. o Strategy 3: Obtain large grant(s), leverage with in-kind contributions, to expand physical campus. Include renovations in the expansion budget.

●

Goal 10: Expand/Enhance physical plant by improving North end of campus for a more visitor-friendly entry o Strategy 1: Enclose with an atrium structure the area anchored by the current three buildings, extend almost to sidewalk near drop off roundabout. o Strategy 2: Work with City and County to use the property currently occupied by the Chamber of Commerce. This area could be used to create a downtown art park area, with smaller structures, such as gazebos and band shells. o Strategy 3: Negotiate to purchase the property occupied by the former Rojas building. This space should be used primarily for parking and outbuildings for storage. Parking at this level can help the facility meet ADA compliance for access.

The information contained in this report is part of an on-going study which will continue through 2019 via visitor and community surveying. An economic impact study is forthcoming, and preliminary data suggests that any money invested by local governments in arts centers are returned by a factor of up to 10-fold. The totality of the study will be published in 2019. There is an opportunity for board and constituents to review this study during the January 12, 2019, Arts Center Board and Senior Staff Retreat. This project was executed by: Noah Commerford, Joseph Gavato, Dillon Martin, Greg Wakefield; Healy Fellows Dr. Mike Wakefield, Director of the Healy Center for Economic & Business Research and Services Efforts were supported by staff of Sangre de Cristo Arts Center and HGF Architects, Inc. including: Jim Richerson, CEO Trish Rooney, Director of Finance & Administration Alyssa Parga, Director of Marketing & Development Bob Campbell, Marketing & Events Manager Kathy Berg, Office Supervisor/Planning Stephanie Ortega, Development Officer Amy Hurtig-Smith, Principal Architect, LEED AP A very special thank you is extended to the Robert Hoag Rawlings Foundation for funding this effort.

STRATEGIC ANALYSIS INTRODUCTION This strategic analysis of the Sangre de Cristo Arts and Conference Center (SDC or the Arts Center) examines the current situation in which the organization operates. The approach is outside-in, beginning with the most global external environment. After evaluating the macro environment and the operating task environment, the investigation shifts to internal evaluation of the Arts Center. Although presented at the end of the document, financial conditions are also included as part of the internal evaluation. Finally, some possibilities for strategic direction are suggested as a result of the strategic analysis. EXTERNAL ENVIRONMENT

Macro Environment

Figure 1 depicts the environments in which the Arts Center operates. The macro environment presents challenges that organizations cannot influence; they can only respond. Political Legal Influences: ● The Arts Center broke ground on construction in 1970 and opened its doors on June 4th, 1972; construction was possible because of funding from the federal Economic Development Agency and Pueblo County. ● The Arts Center and the Buell Children’s Museum are accredited by the American Alliance of Museums. This Arts Center is a Blue Star Museum. ● The Arts Center is open on holidays which can be found on their website along with a calendar of upcoming FIGURE 1 events. ● Many policies are in place, in order to achieve a unique artistic experience, such as: a non-discrimination policy, complaint policy, arts submission policy, and donation policies. There are also regulations that must be met such as: accessibility, parking, and safety throughout the campus. Economic: (Sangre de Cristo Arts Center’s 2017 Cultural & Economic Impact Statement) ● The total economic impact of arts/culture in Colorado totals more than $13.7 billion. ● Hundreds of local businesses, organizations, and residents annually donate to the Sangre de Cristo Arts Center. In 2017 over 500 donors, outside of Pueblo, contributed over $207,000 to the Arts Center. The 6

● ● ● ●

Pueblo County government supported the Arts Center in 2017 with $500,000 of operational funds and $175,000 of capital improvements and planning funding. The Arts Center employed 32 full time and 32 part time employees, and 133 artists in 2017. The Arts Center had 127,421 visitors in 2017, which is about 115% of Pueblo’s population. (The Children’s Museum of Denver saw 568,000 visitors, which is 83% of Denver’s population. Current Museum Admission: $8-Adults, $6-children, military, Seniors 65+. A variety of different annual memberships can be renewed each year. The Children’s Museum of Denver charges $13 for visitors who are between the ages of 2-59, and $11 for seniors 60+. The Sangre de Cristo Arts Center has engaged in various economic opportunities that have pursued creation of additional revenue streams and provide a service to the local economy: o Offers events to be held on campus such as birthday parties and weddings and the prices vary based on the number of guests. o Open community events such as Festival Fridays. o Sells unique and original artwork in the gift shop.

Socio-Demographics: ● In 2010 Pueblo, Colorado’s population was about 110,291 people, and Pueblo County’s population was about 166,475 people. o Female %=50.7%, male %=49.3%. o Over 14,000 veterans. ● Median household income=$42,000, % below poverty threshold=19.9%. ● Total retail sales per capita in 2012=$12,140 ● Residents of Pueblo with a bachelor’s degree or higher in 2016 =21.2%. ● Pueblo has two highly accredited colleges (CSUP, PCC) ● There are nearly 50 different schools in Pueblo County. o Both school districts converted to 4-day school weeks in 2018. o Pueblo education is one of the most underperforming and underfunded education systems in the nation. ● The Arts Center appeals to: artists, art enthusiasts, children/students, veterans, and grandparents. ● The Sangre de Cristo Arts Center has a premier location because of easy access off of I-25, is on a busy and popular avenue, and is just shy of the downtown area where business is successful, and the number of activities continues to increase. Technological/Cultural: ● Within the last two years, there has been a 70% increase in the number of live performances at the Arts Center, demonstrating an increasing interest in the arts within the community. ● The Arts Center has a theater, but needs a variety of upgrades, including projection system, in order to offer a unique and professional experience for performers and guests. ● There is social media involvement from the Arts Center in order to engage with people outside of Pueblo and to younger visitors. The Arts Center uses and maintains a website with upcoming events, important organization information, and rates on admissions and events. ● The Arts Center within the next decade would like to expand physical structures including: an atrium over the center of the campus, a parking garage, more walkways, more restrooms, more space for art and conferences, and a more centralized entrance for the public. ● By 2020, the Arts Center aims to upgrade most of the control panels and fire alarms on campus since most are beyond their lifecycle. This process was begun in 2018. International: ● In 2016, museums accounted for more than $50 billion in GDP, 726,200 jobs, and $12 billion in taxes for government spending. 7

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Children’s museums are a popular type of museum because of the diversity, uniqueness, and opportunities it can offer year-round. The Arts Center had visitors from 45 states, and over ten countries including France and Italy in 2017. Within the Arts Center, there are many pieces of artwork from artists around the world. And there are several pieces of artwork that have worldwide cultural meanings to them.

TABLE 1 – Macro Environment Summary

Economic

Political

Socio-Demographic

Technological

National Strong economy, inflation picking up. Bull market has been persistent.

State Very strong in larger metropolitan areas. Fast growth usually is time-limited.

Local Stronger than in recent past, but high level of fixed incomes, retirees, and government program support limits discretionary spending. Increasingly Generally strong Moderately strong tumultuous. Role of support of arts. support of arts, but arts in current funding is challenged administration is by other pressing uncertain. Funding community needs and decisions here can robust growth of nottrickle down to state for-profits seeking and local levels. assistance. Strong orientation to Education levels Education levels the arts nationally. exceed national levels. significantly below Higher education levels Very strong interest in state and national may be associated with the arts at the state levels. Interest in interest in the arts. level. sports tend to dominate. Education in County is significantly higher than in City; perceptions may differ. Across the board, technology creates both opportunities and challenges. Access to information about organizations, their offerings, and arts content is unprecedented. A potential downside is a greater preference to access the information remotely and forgo physical attendance.

PORTER’S GENERIC STRATEGIES The Five Forces of Competition (Porter): Porter’s Five Forces was created by Michael Porter, a former Harvard Business School professor, which examines an industry’s attractiveness and profitability. The five forces include: new entrants, substitutes, buyers’ bargaining power, suppliers’ command of industry, and existing competitors. The weaker these forces are, the more attractive and profitable an industry or organization becomes. Each of these forces are ranked on a scale of low to high, low meaning a low threat level and high meaning a high threat level to the Sangre de Cristo Arts Center. 1. New Entrants: moderate ● Some barriers to entry include: funding from the county government/donations from citizens, property availability, various business regulations/taxes, and setting promotional plans that appeal to the demographics of the Pueblo community.

Examples of future entrants include: minor league baseball coming to Pueblo, the Pueblo Convention Center expanding, Sarah Shaw Dance studios increasing in size, and City Park plans to add several renovations. The Sangre de Cristo Arts Center may consider new entrants as a moderate concern because the Arts Center has an established reputation for more than 40 years, has a great location, appeals to Pueblo’s demographics effectively, and has received millions of dollars’ worth of funding. 2. Substitutes: high-medium ● Since Pueblo County has a population over 160,000, there are many substitutes to the Sangre de Cristo Arts Center. Entertainment/cultural: Colorado State Fair, Pueblo Zoo/City Park, Pueblo Riverwalk, Pueblo Reservoir, Rosemont Museum, Steelworks Museum, El Pueblo Museum, the Pueblo Weisbrod Aircraft Museum, movie theaters, performing theaters, and sporting activities. Educational/historical: CSUP, PCC, Rosemont Museum, Steelworks Museum, El Pueblo Museum, and the Pueblo Weisbrod Aircraft Museum The substitutes presented in TABLE 2 (page 5) have a high to a medium impact towards the Sangre de Cristo Arts Center because Pueblo County has over 160,000 people and Pueblo is just a short drive away from Colorado Springs and Denver, which has a lot of options for museums and entertainment. Here in Pueblo there are four well-known museums located in different parts of the city, but the Sangre de Cristo Arts Center is truly unique with a one-of-a-kind environment and many opportunities. There is not another place with a museum, conference center, café, and performances in Pueblo. 3. Buyers’ Bargaining Power: high ● The only discounting or bargaining guests have towards the Arts Center would be group admissions. So, the more people a group contains the lower the average cost of admission per person is. (e.g., school field trips) ● Spending on museums and arts center activities is discretionary on the part of the consumer, and may be considered broadly as entertainment. As a result, consumers have considerable choice as to how their money will be spent. Some ways guests and performers could increase bargaining power include: survey more while asking for recommendations, offer tier pricing on space, and make the Arts Center more than just an experience. 4. Suppliers’ Power in the Industry: moderate ● Due to the large amount of outside funding and accepted donations, this group of stakeholder contributors can dramatically impact the ability of the Arts Center to fulfill its current mission and enhance services provided to the community. Moreover, the caliber of performers the Arts Center is able to attract will determine attendance rates and how much the Arts Center can charge for different exhibits and events. This specific power is moderate. ● Contributors have influence on where their money can be spent. For example, if a local organization donates $50,000 to the Arts Center, that business can ask for that money to be spent in a specific way. ● Regarding government funding, there are a plethora of different worthy organizations seeking funding from both City of Pueblo and Pueblo County. Therefore, the supplier power from this source is moderately strong due to competition for funding from local governments.

TABLE 2 – Comparison of Local Attractions Museum/Attraction Admissions/Prices

Sangre de Cristo Arts Center/Children’s Museum

Children (3-16) Adults (17-64) Seniors (65+) Veterans

Pueblo Riverwalk Colorado State Fair

FREE Admission Fees Children (4 and Under) Children (5-12) Adults Food/Drink Ride Pass Carnival Games Souvenirs/Shopping Parking Daily Pass Annual Pass Equipment Rentals Children (3-12) Youth (13-17) Adults (18+) Seniors (65+) Veterans Children (6-18) Adults (19-59) Seniors (60+) Guests (7+) Students (7-18) Seniors (60+) Veterans Children (4-12) Adults Children (6-10) Adults Seniors (65+) Children (0-12) Adults Seniors (62+)

Pueblo Reservoir

Pueblo Zoo/City Park

Rosemont Museum

Pueblo Weisbrod Aircraft Museum

Steelworks Museum El Pueblo Museum

Mesa Drive In

5. Existing Competitors: high Rosemont Museum

Pueblo Zoo/City Park CSUP/PCC Bents Old Fort

$6 $8 $6 $6

Free $7 $10 Var; Water = $4 $35 $1+ each Var $7 $7 $70 >$25 $10 $11 $12 $11 $9 $4 $8 $6 $9 $7 $7 $7 $4 $6 $4 $5 $4 FREE $9.50 $7

TABLE 3 El Pueblo Museum

Pueblo Riverwalk Nature Raptor Center Royal Gorge

Pueblo Weisbrod Aircraft Museum Pueblo Reservoir Colorado State Fair Mesa Drive In

Steelworks Museum

Runyon Sports Complex Pueblo Convention Center

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Some competitive advantages of competitors presented in TABLE 3 include: established reputation, location, effective promotional tactics/advertising, location, wide profit margins/low fixed costs, and some of these competitors offer more than just an experience or a day of fun. We view this industry more on the monopolistic competition side because there are numerous activities in Pueblo that compete with the Arts Center, yet each business is a little different. Certainly, the Arts Center does not have anywhere close to a big market share yet because there is not much fluctuation of profits because the Arts Center receives a consistent amount of funding each year and because their revenue generators stay consistent (admissions). FIGURE 2 identifies the location of existing competitive substitute options for the Arts Center.

FIGURE 2 Map Legend: 1 2 3 4 5 6 7 8 9 10 11 12

Sangre de Cristo Arts Center/Children’s Museum Pueblo Reservoir/Lake Pueblo Pueblo Zoo/City Park Steelworks Museum El Pueblo Museum Pueblo Riverwalk Colorado State Fair Rosemont Museum Pueblo Weisbrod Aircraft Museum Pueblo Convention Center Mesa Drive In CSU Pueblo

COMPARISONS WITH OTHER MUSEUMS The graph in FIGURE 3 shows admission prices of various art museums across the United States that are in cities similar in population size to Pueblo Colorado. TABLE 4 presents data on key factors of selected arts centers from around the country. Museums were selected based first on city population size. We use this rational for two reasons. First, we consider the immediate population that is served. Second, we consider the government funding base could be roughly equivalent, based on population size. Ten cities immediately above Puebloâ&#x20AC;&#x2122;s population, and ten cities immediately below were identified to contact. Denver was included as a museum in the region only for information, but is a statistical outlier in size and number of visitors, so it will be excluded from average information.

FIGURE 3 - U.S. Museum Admission Prices 16 14

Admission Pirces

12 10 8 6 4 2 0

Sangre de Cristo Denver Art Museum Currier Museum of Arts Art (New Center/Children's Hampshire) Museum

The Gibbes Museum of Ventura Whistler House Museum of Art County (California) Museum of Art (South Carolina) (Massachusetts)

Museum Children

Adults

Seniors

TABLE 4 – Comparison of Selected Arts Centers Art Center

City and population

State

Yearly Visitors

Complex Sq Ft.

Memberships per year

Membership prices

Depart -ments

Most Profitable Department

Denver Art Museum Springfield Art Assoc. DeGallery

Denver 704,621 Springfield 114,868 College Sta.113,564 Murrieta 113,326 Downey 113,092

736,000

146,000

25,000

$55-$5,000

90,000

22,300

1000

$45-1,000

star wars, Van Goh, and samurai exhibits Art Education

Peoria 112,883 Westminster 112,812 Elgin 112,456 Antioch 111,674

Palm Springs Art Museum Columbia Mem. Space Center Contemporary Art Center Butterly Pavilion Side Street Studio Arts Delta Gallery

TX CA

Avg events per month 14

Public/ Private funding Public

Private

UNRESPONSIVE AFTER 3 ATTEMPTED CONTACTS – Emails and phone messages left 175,000

150,000

5,000

$65-$5,000

Private

8,100

14,000

600

$25-$10,000

Public

Development and 10 membership UNRESPONSIVE AFTER 4 ATTEMPTED CONTACTS – Emails and phone messages left

Rent space to 8 artists, receptions UNRESPONSIVE AFTER 3 ATTEMPTED CONTACTS – Emails and phone messages left

UNRESPONSIVE AFTER 4 ATTEMPTED CONTACTS – Emails and phone messages left

Ruth Funk Ctr for Textile Art

Palm Bay 111,657

Ambleside Gallery Whistler House Mus. of Art Currier Museum of Art Sangre de Cristo Arts Center The Gibbes Museum of Art

High Point 111,513 Lowell 111,346

UNRESPONSIVE AFTER 3 ATTEMPTED CONTACTS – Emails and phone messages left

Ventura Museum ThinkSpace Bailey Contemp. Arts Museum Outdoor Arts Armory Art Center

7,500

5,450

115

$50-$1,000

Revenue from gift shop, and event sales

3 exhibits per year

From University

Manchester 111,196

90,000

98,000

3500

$45-$1,500

Development

Private

Pueblo 111,127

45,420

1,575

$30-$1,500

Rentals (2017)

13.25

Both

North Charleston 110,861

127,146 (2017 data) 65,000

43,100

1,800

$25-$1,000

Development

3-5 events

Both

Ventura 110,790 Inglewood 110,598 Pompano 110,473 Centennial 110,250 W. Palm Beach 110,222 Everett 110,079 Richmond 110,040

35,000

10,000

800

$40-$1,000

Museum

Both

Public

CA FL

UNRESPONSIVE AFTER 3 ATTEMPTED CONTACTS 6,000

10,000

Gov Agency

N/A

Artists in Residents

UNRESPONSIVE AFTER 4 ATTEMPTED CONTACTS – Emails and phone messages left

Schack Art WA 40,000 19,000 300 $50-100 6 art sales/gift shop 2-Jan Private/ Center local gov Berkeley Art CA UNRESPONSIVE AFTER 3 ATTEMPTED CONTACTS – Emails and phone messages left Mus. & Pacific Film Archive Fresno Art Clovis CA 25,000 30,000 1500 $50-$10,000 5 curatorial/exhibitions 5-Feb Private Museum 109,691 Yellowstone Billings MO 10,000 Unknown 750 $65-10,000 3 Development 5 Public Art Museum 109,642 Boulder Boulder CO 45,000 UNRESPONSIVE AFTER 3 ATTEMPTED CONTACTS – Emails and phone messages left Museum of 107,125 Contemp. Art Grand Grand CO UNRESPONSIVE AFTER 4 ATTEMPTED CONTACTS – Emails and phone messages left Junction Art Junction Center 62,475 AVERAGES* 55,673 49,439 1,540 $44-$10,011 4.67 6.4 SDC % of 228% 92% 102% 68%-15% 107% 207% Average *Denver excluded from averages due to both size of museum and number of visitors

Some useful observations about Table 4 can be made. There seems to be a modest relationship between the number of events offered and the number of visitors. There also seems to be a modest relationship between the size of the facility and the number of annual visitors. 13

When compared to the Arts Center, striking relationships emerge. Although slightly smaller in finished square feet than average, the number of events is slightly more than twice the average, and the number of visitors is 2.28 times the average. There are slightly more departments than average, which suggests a slightly higher level of staffing. However, the much larger number of events and the visitors generated from those events more than justifies this marginally higher level of departments. The average number of visitors/sq. ft. is 1.126, while the same ratio for the Arts Center is 2.799. Based on this comparison, it appears that SDC is about two and one-half times better than average at utilizing space, and better at managing operations than many of the other museums responding to our inquiries. When examining membership prices, Sangre de Cristo’s lowest membership price is near the bottom, or 68% of the average of the museums that responded. The price for the top level of membership is significantly lower at about 15% of average. This suggests that there is room for the Arts Center to increase membership prices modestly to improve overall revenues. Finally, 50% of the museums contacted were unwilling to respond. The large number of non-responsive museums may be a reflection of their management, or their overall funding and staffing levels that prevented taking time to respond. It would be helpful to know if there are significant differences among museums not responding compared to those that did respond. Perceptual Map for Sangre de Cristo Arts Center: A perceptual map (FIGURE 4) is a graphic display that shows the perceptions of customers with relation to product/industry characteristics. The spot that most organizations or industries would prefer to be in is the bottom right quadrant because that quadrant represents companies or organizations that portray the most amount of activities for the most competitive price, or in other words, represents the best value for the purchaser. Sangre de Cristo Arts Center is the sole occupant among local attractions of the most desired position.

FIGURE 4 ● Colorado State Fair ● Pueblo Convention Center ● Pueblo Zoo/City Park

● Pueblo Reservoir # of activities/value Low - High ● Rosemont Museum, El Pueblo Museum, Steelworks Museum, and Pueblo Weisbrod Aircraft Museum

● Pueblo Riverwalk

● Nature Raptor Center Price Low-High 14

● Sangre de Cristo Arts Center

FIGURE 5 compares prices of the Sangre de Cristo Arts Center Children’s Museum to other museums in the Pueblo area. The Children’s Museum arguably offers considerably more for children than the other museums, and is very competitively priced (refer to Table 2). Given the price structure in Pueblo, and the activities available, there is room for a price increase at the Children’s Museum without adversely affecting attendance rates. TABLE 5 is a listing of entertainment offerings in Pueblo.

TABLE 5 - Entertainment in Pueblo

Sangre de Cristo Arts Center

CSUP Sporting Events/Performances Colorado State Fair Pueblo Reservoir/Lake Pueblo

2 Bowling Alleys

Pueblo Zoo/City Park* Pueblo Riverwalk High School Sporting Pueblo Convention Center Events/Performances YMCA 4 Swimming Pools/Water Fun^ 5 Museums Epic Entertainment (mini golf, Tinseltown Movie theater^ Mesa Drive In*^ batting cages, laser tag) Color Splash Paintball^ The Great Pumpkin Patch* Various Haunted Houses* 3 Golf Courses^ The Pueblo Country Club Pueblo Athletic Club *Seasonal Entertainment ^Primarily One Entertainment Activity

Driving Forces: Internal: ● The Arts Center has a significant internal problem, which is a high employee turnover rate among campus facilities staff. According to the CEO, Jim Richerson, within the last five years only two employees have stayed in the same position, reflecting a repositioning of the staff with better alignment 15

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to an annual performance plan. Another positive force is the high number of volunteers and volunteer hours that assist staff deliver programming. The Arts Center offers a variety of events, performances, and exhibitions not only month to month but yearly. Additionally, local school districts have three-day weekends, so many events/promotions occur Friday-Sunday (See FIGURE 6 on page 11). In order to improve its aged infrastructure, to better serve the community for quality of life activities and as a tourist draw, the Arts Center envisions a large-scale expansion within the next decade.

External: • Demographics such as: income per household, average amount of money spent on activities, and graduation rates, and number of four-year degrees as a percent of the population in Pueblo are low. Demographically, this represents a challenge to the Arts Center. There is less disposable income to spend on arts activities, and lower education statistics represent both a challenge and opportunity for the Arts Center to make a difference. Because of lower per capita income, the Arts Center has historically relied on county funding for some of its financial support. ● There are a number of museums and local attractions in Pueblo competing for the consumer’s attention. In order to be successful, it is imperative to rise above the fray of competing organizations with a differentiated message and/or unique communication channels. ● Because of road construction occurring nearly seven days a week not only on I-25 but on Santa Fe Avenue, organizations may soon start changing times/days of the events so residents are not stuck in traffic. The negative impact of road construction is temporary. The long term outlook for road construction is a large positive impact for the Arts Center, since the Arts Center is strategically located at the I-25 City Center exit. This makes the Arts Center the first property encountered when entering the downtown area from I-25.

Entertainment Attraction

Sangre de Cristo Arts Center/Childrenâ&#x20AC;&#x2122;s Museum

TABLE 6 - Hours of Operations

Year Round? Yes

Summer Hours

Museum Galleries

Mon - Sat: 10am-5pm Sun: 12pm-4pm

Buell Children's Museum

Mon - Sat: 10am-5pm Sun: 12pm-4pm

Ticketing Box Office (Open Daily) Mon-Sat: 9am-5pm Sun: 12pm-4pm

Off Season hours / Winter All closed federal holidays Offseason hours Labor Day-Memorial Day Museum Galleries Closed Mon & Tues. Wed-Sat: 11am-4p Sunday: 12p-4p

Buell Children's Museum Mon: Closed Tues - Sat: 11am-4pm Sun: 12pm-4pm

Ticketing Box Office (Open Daily)

Rosemont Museum

Tues-Sat: 10am-3:30pm

El Pueblo Museum

Yes

Mon-Sat: 10am-4pm

Mon-Sat: 9am-5pm Sun: 12pm-4pm *Closed entirely during January Tues-Sat: 10am-3pm Mon-Sat: 10am-4pm

Steelworks Museum Pueblo Weisbrod Aircraft Museum Mesa Drive In

Yes Yes

Mon-Sat: 10am-4pm

Mon-Sat: 10am-4pm Sun: 1pm-4pm

Mon-Sat: 10am-4pm Sun: 1pm-4pm Closed Labor day to Spring

Colorado State Fair

Yes/No

Open early Spring to Labor Day. Showtime at dusk, 7 days a week. Regular Office hours: 8am-5pm Fair hours

*Open Sundays from Memorial Day-Labor Day

Various Exhibits, displays, events.

FAIR HOURS:

Pueblo Zoo

Yes

City Park

Yes and No

Monday - Thursday: 12pm-11pm Friday - Sunday: 10am 11pm Labor Day: 10am-11pm Regular, non-Fair hours are 8am-5pm Mon-Sat: 9am-4pm Sunday: 12am-4pm Swimming Pool: May 25th â&#x20AC;&#x201C; September 3rd Tues-Thu: 6pm-9pm Frisbee golf course, bridges, golf course: sunrise to sunset

Distinctive Competencies:

Mon-Sat: 9am-4pm Sunday: 12am-4pm Christmas lights special showings, various days Frisbee golf course, bridges and golf course: sunrise to sunset

A distinctive competence refers to assets, characteristics, and intangible amenities of an organization that are better than its competitors. When an organization can do something better than other organizations, that organization has a competitive advantage over other organizations. Distinctive competencies can occur in a 17

variety of different areas including: technology, manufacturing/supplying, consumer relations, marketing, or the customer service an organization has. Some successful organizations would refer to a distinctive competence as an invisible patent. ● Has a diverse and unique calendar of events and the Arts Center does a good job of staying in season with events. ● The Arts Center sets a lot of events each month that appeals to a wider target market. ● Unlike many entertainment organizations in Pueblo, the Arts Center/Children’s Museum is open yearround with great business hours (TABLE 6). This allows more and more people to come and visit while also appealing to a bigger target market than the Rosemont Museum or even the zoo. ● The Arts Center/Children’s Museum has diversified its streams of income, increasing financial stability. Through rentals, admissions, ticket sales, memberships, and other sales, there is a solid foundation of earned income. Support is also received from Pueblo County and City. The revenue stream that demonstrates the largest vote of confidence for the Arts Center by the community comes from donations. ● The Arts Center campus is truly a one of kind place in Pueblo County. No place in the county offers conference rooms, catered events, a children’s museum, a wide range of art exhibits, various performances, offers private/public visits (school field trips), and has an entertainment theater. ARTS CENTER SWOT ANALYSIS STRENGTHS ● Location-right off I-25 at the entrance to downtown ● Leadership team – with experienced senior managers ● Reputation ● Response to 4 day school week with D70 ● Yearly traditions (e.g., Nutcracker, Representing the West, Own Your Own) ● Conference rentals ● School field trips ● Incorporates aspects of arts exhibits and performing arts ● Open year round - from Memorial Day to Labor Day open 7-days a week in line with tourists coming through Pueblo, according to the Pueblo Chamber of Commerce ● Large and loyal volunteer base (Arts Associates & Wednesday Weeders) ● Ability to increase public and private funding because of communication tools like the annul Cultural & Economic Impact Study WEAKNESSES ● Communication – field trips, e.g. delays in getting back to teachers/understaffed? ● Age and condition of building infrastructure ● ADA issues related to property ● Rate of conversion from visitor to member ● Small dressing rooms in theater ● Collection Care areas need upgrading ● Way finding for visitors challenging ● Not enough program areas to meet community demands/Friday Arts Academy ● No direct connectivity to Riverwalk and downtown ● As attendance has grown staffing has dipped or remained the same ● From 2010 to 2014 the Arts Center struggled to stabilize leadership

OPPORTUNITIES ● Improved, targeted marketing ● Unfinished Basement in Children’s Museum ● 4 Day School week with D60 ● Increased funding from City and County ● Grants ● Improved/expanded music programs ● Programs for specific market segments, i.e., senior citizens, veterans ● Renovations and expansions – atrium, plaza, etc. ● Overflow from Convention Center ● Enhanced alliances/partners with other organizations e.g., Arts Alliance, CSUP ● Arts Center into the community – connection to community – signage advertising ● Improved signage ● Bigger Artists – better known shows – music/dance workshops ● Bring back successful Puebloans – people who leave Pueblo, make it big ● Local performers/street artists ● Acquire Chamber of Commerce, Rojas properties ● Expand internship possibilities with CSU-P and PCC ● Take advantage of the Arts Center’s 50th anniversary happening in 2022 ● Explore more long-term public funding sources like arts/entertainment district similar to the Library district or a dedicated % of sales tax like Arts District in Denver area ● As visibility of the Arts Center is on the rise it is time to explore a capital campaign THREATS • Need to better understand and improve its earned income centers ● Rojas property needs to be purchased to secure future expansion ● Reduced funding from government agencies ● “Been there, done that” mentality in the area ● Road construction – temporary ● Access from street ● Security concerns from an “open campus.” ● Presence of other entertainment in the community ● The local demographics (e.g., income per household) are lower compared to other Colorado communities ● The Pueblo Convention Center and the Riverwalk are both going through expansions Internal Factor Evaluation Matrix An Internal Factor Evaluation (IFE) Matrix is a business management strategy tool that extends the SWOT analysis, and is used to evaluate an organization’s internal environment to determine how well it has managed its strengths and weaknesses, which comprise the SW part of SWOT. Below is a chart that examines the internal strengths and weaknesses of the Sangre de Cristo Arts Center. The Internal Factor Evaluation Matrix includes a weight, which represents the importance of each strength and weakness and is measured on a scale of 0-1.0. The rating factor evaluates each strength relative to how well the Arts Center has leveraged that strength to its advantage and evaluates each weakness relative to how well management has mitigated the impact of that weakness. The weighted score factor is composed of the weight and rating multiplied together, and the sum of that column is compared to what would be an average rating of 2.5. Generally, values exceeding 2.5 demonstrate good management of internal factors while ratings below 2.5 indicate significant room for improvement. The Internal Factor Evaluation Matrix for Sangre de Cristo Arts Center is presented in TABLE 7. The weightings and ratings in the IFE and EFE are estimations, based on Healy team discussions and their collective professional judgement. 19

TABLE 7 - Internal Factor Evaluation Matrix

Key Factors Internal Strength Property Location Number of Monthly Events Respected Reputation Conference Room Rental Space Open Year Round Possible Property Extensions High Involvement in Community Diverse Customer Market Internal Weakness Technology Use Aggressive Advertising Reliance on Outside Funding Number of parking Spots in Parking Lot Limited backstage Space in Theater Lack of Central Point on Property Lack of Direct Connectivity to the Downtown Area Lack of Proper Staffing

Weight

Rating

Weighted Score

0.08 0.05

4 4

0.32 0.20

0.05 0.05

3 3

0.15 0.15

0.08 0.06

4 3

0.32 0.18

0.06

0.18

0.07

3.5

0.25

0.07 0.07 0.08

1.5 2 1

0.11 0.14 0.0810

0.06

0.12

0.04

0.08

0.05

1.5

0.08

0.05 1.5 =1.00 *Weight=0.0 (not important)-1.0 (very important) *Rating: 1=Major Weakness 2=Minor Weakness 3=Minor Strength 4=Major Strength

0.08 2.60

External Factor Evaluation Matrix An External Factor Evaluation Matrix (EFE) is a business management strategy tool used to examine an organizationâ&#x20AC;&#x2122;s external environment which shows the opportunities and threats for a specific organization, which represents the OT portion of SWOT. TABLE 8 shows the External Factor Evaluation Matrix for the Arts Center. Similar to the IFE, the EFE includes a weight, which shows the relative importance of each opportunity and threat to the Arts Center on a scale of 0-1.0.

TABLE 8 - External Factor Evaluation Matrix

Key Factors Opportunities District 60 has a 4-day School Week Unfinished Basement Possible Partnerships with CSUP & PCC Downtown Area Expanding (e.g., Baseball Team) Possibility of Increased Funding from the City Resources to Increase Advertising Improved Outdoor Signage on Property Ability to Attract Better Known Artists & Performances Threats Road Construction on I25 and Santa Fe Ave Limited Parking Presence of Other Entertainment in Pueblo Demographics Compared to Other Cities with Art Museums Are Lower (e.g., income per household) Convention Center and Riverwalk both Expanding External funding constraints

Weight

Rating

Weighted Score

0.08

0.24

0.08 0.06

1 1.5

0.08 0.09

0.07

0.14

0.10

0.40

0.08

1.5

0.12

0.06

2.5

0.15

0.07

0.14

0.08

2.5

0.2

0.07 0.08

1.5 2.5

0.11 0.2

0.05

0.15

0.05

0.10

0.07

2.5

0.175

=1.00 *Weight=0.0 (not important) - 1.0 (very important) *Rating: 1=Response is Poor 2=Response is Average 3=Response is Above Average 4=Response is Superior

=2.295

The rating factor shows how the Arts Center has responded to a specific opportunity or threat. The weighted score factor is composed of the weight and rating multiplied together. Similar to the IFE, an overall score greater than 2.5 demonstrates good management responses to environment events, while ratings less than 2.5 21

indicate weaker reactive and proactive responses. Based on estimations of performance in all areas for the current fiscal year, the Arts Center has performed at an acceptable level in leveraging strengths, and working to reduce the severity of organizational weaknesses. Performance in pursuing opportunities and safeguarding against threats is estimated to be slightly below an average rating. It is important to note that some of the lower response ratings for SDC are an artifact of relatively low funding for capital improvement projects. Adequate funding for capital improvements and marketing efforts offers the potential of much higher performance in the EFE Matrix. INTERNAL ENVIRONMENT VALUE CHAIN ANALYSIS Using the strategic management analysis of the tool called Value Chain, we can determine in what specific activities in the organization Arts Center holds a strategic advantage or strategic disadvantage, and the analysis can inform us how to align activities with external factors so that SDC can adapt, survive, and take advantage of opportunities as they occur. A brief set of definitions for the vocabulary that is used in Value Chain Analysis, along with Pueblo characteristics exemplifying those concepts are presented in TABLE 9. The process usually begins with Environmental Scanning, where evidence of environmental change may be detected. If possible change is detected, an assessment is made to determine if that change can impact the way in which the organization competes or operates. These changes are known as Driving Forces, which can cause an organization to evaluate what it does and how it goes about doing it. Driving Forces have the potential to impact Key Success Factors, which are those activities the organization must do well in order to survive and prosper. If Driving Forces change, it is likely that the organization will need to evaluate whether business can continue as usual, or if new capabilities need to be developed. Shifting to internal activities, if an organization does something better than competitors, that is a Distinctive Competence. If it is something about which a strategy may be launched, then it is a Core Competence that can lead to a Competitive Advantage. If a Distinctive Competence is in a Primary Activity of the Value Chain (FIGURE 7) it has the potential to become a Core Competence. Distinctive Competencies and Core Competencies located in Primary Activities should be aligned externally with Key Success Factors. As an example, if patrons prefer child-oriented programs (Key Success Factor), and the Arts Center offers predominantly child-oriented programs better than competitors (Distinctive Competence in the Primary Activity of Exhibition), alignment has been created between these areas. When this alignment occurs, the organization has the best opportunity to create Competitive Advantages, which is a long-term ability to outperform competitors in ways that are difficult to imitate, leading to higher levels of organizational performance and profitability. Benchmarking is the process of comparing the organization, activity by activity in the Value Chain, with industry standards to determine how well the organization is performing on each activity, and in general. Activities where SDC has done a good job in creating alignments, and is creating a sustainable competitive advantage is in the areas of programming and keeping costs low. Areas where SDC enjoys moderate performance are in increasing membership, developing staff and gaining public support. Areas in which SDC suffers a competitive disadvantage are improving non-membership revenue sources (e.g., food service), maintenance of the physical plant, obtaining increased financial support from governmental entities, and implementation of a comprehensive marketing plan.

TABLE 9 – Value Chain Associated Concepts

Concept

Definition

Driving forces

Things that affect the way firms compete in an industry

Key Success Factors (no more than 6)

Things you must do well to survive

•Programming that fits the community's needs and desires •Improving non-membership revenue sources •Increasing membership •Keeping costs low •Developing staff •Obtaining increased financial support from the City of Pueblo •Obtaining more public support for better funding

Distinctive Competencies

Things you do better than others

Core Competencies

Things that you can build a strategy around and leads to competitive advantage

Competitive Advantage

Things that you can do better, and leads to Sustainable profit advantage

Benchmarking

Comparison of activities and costs to other organizations; Efficiency v. Effectiveness

•Location •Reputation •Leadership team •Response to 4 day school week •Conference Center rentals •Covers all aspects of "Arts" •Events •Collections of art owned or available •Quality of experience provided •Image portrayed •Perceived value •Family experience •Physical campus resources •Product/Service Differentiation •Variety •Organizational Culture •Reputation •Innovation •Location •Aesthetic and educational experiences Refer to Value Chain

Environmental Scanning

Watching for change

Pueblo Environmental Factors Related to Concept •Construction of I-25 •Development of baseball fields •Government funding preferences •Government funding •Tourism to Pueblo •The economy •Disposition of the Rojas building •Social perception of the arts

Secondary Primary

Firm Infrastructure (e.g., Governance, Planning, Budgeting, Information Tech., Facilities) Human Resource Management (e.g., Recruiting, Training, Compensation System) Research and Development (e.g., Scholarship, Exhibit Design, Market Research) Fundraising (e.g., Earned Revenues, Proposals, Solicitations, Events, Donor Relations) Educational Programs (e.g., Local School Outreach, Adult Classes, Special Tours) Assembly & preservation (e.g., Acquisition, Authentication, Cataloguing) 3.75

Exhibition (e.g., Curating, Display, Events, Theater, Support Materials) 4

Hospitality Services (e.g., Rentals, Shops, Restaurants, Maintenance) 2.5

Marketing & Sales (e.g., Promotion, Advertising, Catalogs) 2

Visitor/ Constituency Services (e.g., Member Outreach, Special Events)

FIGURE 7 â&#x20AC;&#x201C; VALUE CHAIN Number rankings are on a scale of 1-5, with 5 the best. SDC Arts Center in this ranking is compared to the art centers compared in Table 4.

Profit Margin

STRATEGIC ALTERNATIVE DEVELOPMENT TOWS MATRIX The TOWS Matrix is a strategic tool that can facilitate the initial development of strategic alternatives available to the Arts Center (TABLE 10). It results in a 2X2 matrix that is constructed by placing Threats and Opportunities on the horizontal axis and Weakness and Strengths on the vertical axis. Each Threat is matched with specific Weakness to create possible alternative Threats/Weaknesses strategies. The process is repeated for combinations of Threats/Strengths, Opportunities/Weaknesses, and Opportunities/Strengths.

TABLE 10 – “TOWS” MATRIX

THREATS 1. Rojas property not available 2. Reduced funding from government agencies 3. “Been there, done that” mentality in the area 4. Road construction – temporary 5. Access from street

WEAKNESSES 1. Communication – field trips, e.g. delays in getting back to teachers (more than couple months) 2. Tracking of pottery 3. Age and condition of building infrastructure 4. ADA issues related to property 5. Conversion from attendee to member 6. Small dressing rooms in theater STRENGTHS 1. Location 2. Leadership team 3. Reputation 4. Response to 4 day school week with D70 5. Yearly traditions (e.g., Nutcracker) 6. Ballroom rentals 7. School field trips 8. Covers all aspects of “Arts” 9. Open year round

W3, W4, W6, T1, T5-pursue endowments, leverage with grants to purchase Rojas property, expand campus, renovate and update physical plant systems W5, T2- Increased membership reduces reliance on gov’t funding

S4,S6,T2-Responsiveness to community needs can create additional revenue streams, reduce dependence on gov’t funding S2,T3-Innovativeness from leadership can reinvigorate ideas, offer new possibilities

OPPORTUNITIES 1. Improved, targeted marketing 2. Finish Basement, Children’s Museum 3. 4 Day School week with D60 4. Increased funding from City, County 5. Grants 6. Improved/expanded music programs 7. Renovations and expansions – atrium, plaza, etc. 8. Overflow from Convention Center 9. Enhanced alliances/partners with other organizations e.g., Arts Alliance, CSUP, PCC, City Zoo 10. Improved signage, advertising 11. Bigger name artists 12. Bring back successful Puebloans – those who left, make it big 13. Local performers/street artists 14. Acquire Chamber of Commerce, Rojas Properties W3, W4, W6, O2, O4, O5, O7 – Increased funding can be used for renovations, expansion W5, O1, O6, O9, O11, O12, 13 – Work with partners share lists, create additional reasons to become a member. Consider joint member programs. W1, O3, O8, O9 – Work on improved external communication to create partnerships that will result in improved revenue streams S1, O10 – Location (I-25, City Center Dr.) is a strategic advantage. Increase signage, visual impact for maximum exposure S1, S6, S9, O2, O8 – Location is perfect to partner with Convention Center, take advantage of increased meeting activity in Downtown. Use expanded meeting space to enhance revenue streams. S4, S7, S8, S9, O3, O5, O6, O9 – Expand, enhance offerings on Fridays for area students. Partner with City Transit to provide access. Partner with CSUP, Zoo, to provide integrated, educational activities and events. Pursue grants (state, federal, private foundations) to subsidize programs. S2, S3, S8, S9, O2, O6, O7, O11, O12, O13, O14 Expanded programs, ID new target groups (seniors, veterans) increase size of physical campus, and attract high profile artists for more activity, service to community and revenue streams.

SPACE ANALYSIS The term SPACE is an acronym for “Strategic Position and Action Evaluation.” The purpose of conducting a SPACE analysis is to quantify and assess internal and environmental conditions in order to identify the most beneficial strategic approaches. 25

The SPACE analysis is based on two axes that incorporate multidimensional constructs. The horizontal axis is anchored at the left by factors related to competitive advantage (CA) and at the right by factors related to industry strength (IS). The vertical axis is anchored at the top by factors associated with financial strength (FS) and at the bottom by factors associated with environmental stability (ES). Each of the factors is evaluated in terms of strength or performance (TABLE 11). The objective of using the SPACE Graph (Figure 8) is to find a single point using (x,y) coordinates to locate the quadrant in which the organization operates. To determine the (x) coordinate, we subtract the value associated with CA from the value for IS: 4.22 â&#x20AC;&#x201C; 3.625 = 0.595 To determine the (y) coordinate, we subtract the value associated with ES from the value for FS: 3 â&#x20AC;&#x201C; 4 = 1.0 Therefore, the coordinates for placement of the Arts Center on the SPACE Graph are (0.595, 1.0). The Arts Center placement is located at the position of the red dot in FIGURE 8, which is in the domain of Quadrant 2. Recommended strategic approaches for Quadrant 2 include: (1) cost reduction, (2) productivity improvement, and (3) raising more capital to follow opportunities and strengthen competitiveness. Based on evaluations of IFE/EFE and the value chain, the Arts Center has engaged in significant cost reduction, including staff reduction. Because of the limited budget, thin staffing can result in a loss of productivity. The key for the Arts Center in maximizing opportunities lies in better funding.

Table 11 Factor Scores Influencing Dimension Scores Factors determining environmental stability (ES) Technological change Many Rate of inflation High Demand variability Large Price range of competing products Wide Barriers to entry into market Few Competitive pressure High Price elasticity of demand Elastic Average Factors determining industry strength (IS) Growth potential Low Profit potential Low Financial stability Low Technological know-how Simple Resource utilization Inefficient Capital intensity High Ease of entry into market Easy Productivity/capacity utilization Low Flexibility, adaptability Low Average Factors determining competitive advantage (CA) Market share Small Product quality Inferior Product life cycle Late Product replacement cycle Variable Customer loyalty Low Competition's capacity Low Technological know-how Low Vertical Integration Low Average Factors determining financial strength (FS) Return on investment Low Leverage Imbalance Liquidity Imbalance Capital required/capital available High Cash flow Low Ease of exit from market Difficult Risk involved in business Much Average

0123456 0123456 0123456 0123456 0123456 0123456 0123456

Few Low Small Narrow Many Low Inelastic

0123456 0123456 0123456 0123456 0123456 0123456 0123456 0123456 0123456 4.22

High High High Complex Efficient Low Difficult High High

0123456 0123456 0123456 0123456 0123456 0123456 0123456 0123456 3.625

Large Superior Early Fixed High High High High

0123456 0123456 0123456 0123456 0123456 0123456 0123456

High Balanced Balanced Low High Easy Little

Financial Strength

Quadrant 1

Quadrant 4

Industry Strength

Competitive Advantage

Quadrant 3

Quadrant 2

Environmental Stability

FIGURE 8

Dimension

Environment Industry Competitiveness Financial strength Appropriate strategies

TABLE 12 - Strategic Posture and Appropriate Strategies Aggressive (Q1) Stable Attractive Strong High

• Growth--possibly by acquisition • Capitalize on opportunities • Innovate to sustain competitive advantage

Competitive (Q2) Unstable Attractive Strong Weak

• Cost reduction • Productivity improvement • Raising more capital to follow opportunities and strengthen competitiveness

Conservative (Q3) Stable Unattractive Weak High • •

Cost reduction Product/service rationalization Invest in search for new products, services and competitive opportunities

Defensive (Q4) Unstable Unattractive Weak Weak

• Rationalization • Divestment as appropriate

GOALS AND STRATEGIES DERIVED FROM TOWS AND SPACE ANALYSES Populating the TOWS matrix with strategies that result from matching Weaknesses/Threats, Strengths/Threats, Weaknesses/Opportunities and Strengths/Opportunities produces a number of action items that are consistent with the recommendations associated with the trajectory in the SPACE analysis. These action item goals that are listed in descending order, as perceived by this team to be most urgent, salient and immediately implementable. ●

Goal 1: Immediate Need for more Program Space o Strategy 1: Finish the basement in Children’s Museum to increase space available for revenue production.

●

Goal 3: Increase revenue with increasing members, increasing the price of memberships, increase admission price, and other considerations o Strategy 1: Target attendees, use gentle persuasion (not a hard sell), highlight benefits. o Strategy 2: Increase the cost of membership to be on a par with the Pueblo Zoo o Strategy 3: Study research supports a general admission increase from $8 to $10. Discussion with management indicates ideal timing for this is at the beginning of the summer exhibit that attracts the highest number of tourists o Strategy 4: Share membership lists with key partners such as the City Zoo. Consider creating a dual membership option, integrate zoo themes in the Children’s Museum, art at the City Zoo. o Strategy 5: Enhance offerings and activities that make the Arts Center more attractive. Offer discounts not only to events, but for food and room rental. Offer member-only events. Provide backstage access to performers for premium memberships. Consider offering programming attractive to Senior Citizens, and possibly veterans. There is considerable overlap between these two groups, and a large portion of the Pueblo population receives government stipends. Making a stronger tie to “Pueblo – Home of Heroes” can be a productive positioning strategy. Consider what “Hero” means to the arts, either as subject or artist. 29

A capital campaign is the most logical approach at this time to create the capital needed for renovation, program expansion, and improved productivity, all leading to higher income from operations.

●

Goal 4: Staffing needs and salary market studies are needed. o Strategy 1: High turn-over in facilities staff. There is a need here to better understand the salary market in this area and increase salaries to increase retention. o Strategy 2: There appears to be times when the Welcome Center Desks are overwhelmed. Consider more staffing in this area. o Strategy 3: There appears to be times when the exhibit staff is overwhelmed. Consideration for more staffing in this area should be considered. o Strategy 4: There appears to be times when Buell Children’s Museum and Learning Center staff are overwhelmed. Consideration for more staffing in this area should be considered.

●

Goal 6: Provide expanded programs, offer higher-profile artists. o Strategy 1: Work with partners to create integrated events (Zoo, Steel Museum, Mtn. Park/Nature Center). Consider student involvement and program instruction with CSUP partnership. Pursue grants to provide seed money to subsidize launch of program expansion. Ask benefactors to sponsor high profile artists. Set higher admissions to view most elite artists to maximize revenue. o Strategy 2: Invite successful former Puebloans to “give back” in the form of workshops to K-12 students.

●

Goal 8: Take advantage of increased meeting and convention activity in downtown area. o Strategy 1: Partner with Convention Center to accommodate meeting and convention needs for larger conventions or if they are overbooked. o Strategy 2: Work with City of Pueblo and Chamber of Commerce to develop a master list and shared website to promote meeting space availability.

●

â&#x2014;?

Goal 10: Expand/Enhance physical plant by improving North end of campus for a more visitor-friendly entry o Strategy 1: Enclose with an atrium structure the area anchored by the current three buildings, extend almost to sidewalk near drop off roundabout. o Strategy 2: Work with City and County to use the property currently occupied by the Chamber of Commerce. This area could be used to create a downtown art park area, with smaller structures, such as gazebos, and band shells. o Strategy 3: Negotiate to purchase the property occupied by the former Rojas building. This space should be used primarily for parking and outbuildings for storage. Parking at this level can help the facility meet ADA compliance for access.

FINANCIAL, PERFORMANCE METRICS ANALYSIS AND RECOMMENDATIONS Overall, the financial condition of the Arts Center is now stable and improving. The calendar years 2014, 2015 and 2016 logged high expenses and financial struggles. The challenge to the Arts Center of the Countyâ&#x20AC;&#x2122;s departure in August of 2014 with County services being replaced by an allowance that was unrealistic and funding from the City steadily decreasing. Now in 2018 public funding has improved. Costs have been contained, attendance and memberships have been stabilized and are improving, and exciting new exhibits have been secured, resulting in very large attendance spikes. New strategic directions emanating from experienced senior management with long-term vision have the potential to produce capital in the primary form of improved public funding, grants and donations, and operating funds through new and increased revenue streams made possible by better long-term planning and public engagement. From a timing perspective the Arts Center is also poised to take advantage of its 50th anniversary in 2022, a milestone easily recognized and ready-made for an overall improvement and expansion campaign. Recommendations in this section are congruent with goals identified from the strategic analysis, and are consistent with most goals contained in the 2017 Sangre de Cristo Arts and Conference Center Master Plan, prepared by HGF Architects, Inc. The first set of recommendations involve capital formation, revenue creation, facility renovations, and phased expansion. 1. Capital formation is critical to ensure that the Arts Center can thrive in the future, and have a foundation from which to create sustainable revenue streams. A portion of capital formation can reasonably be expected to come in part from the city, county and state governments. It can also come from endowments, donations and grants. An additional source of capital can be created through a capital campaign. All of these should be pursued and leveraged against one another. For example, a grant may be in the form of matching dollars based on local government and donor support. Capital formation should be used to renovate and expand facilities. Renovation can ensure continued revenue streams and lower operating costs. Expansion can provide new revenue streams. 2. Revenue creation based on existing programs can occur from increased exposure through: a. More funding for advertising b. Improved communication with D60 and D70, development of programs that serve needs c. Expand partnerships with local organizations d. Continue and expand revenue-producing activities, programs and high profile exhibits e. Increase membership pricing f. Increase admission pricing

Given the average rates observed with other Arts Centers and museums in the community, the Arts Center offers a superior value that would justify increasing rates. Our recommendation is a minimum increase of $2/person and consider an add-on price of at least $2-$4 for a special exhibit. Consider attendance at the Helen T. White Gallery during the summer months of 2016 during the Ansel Adams photo exhibit. Attendance was almost triple normal attendance, which can be attributed to the Ansel Adams body of work on display during that time. A higher admission fee of $12-$15 would be reasonable for such an event, and perhaps as high as $20 for an exclusive, high profile event would still be considered a fair value. The increased fee would not be expected to statistically diminish attendance. There is often speculation that raising prices will result in lower attendance, and this lower revenues. Interestingly, this is seldom the case because elasticity of demand is not exactly proportional with price. A table has been prepared to demonstrate the expected revenue with admission set at different prices. Current attendance average is 2,500. At $8 per person, revenue is $20,000. If ticket prices are increased to $10 per person, average attendance of 2,000 would produce the same income. We estimate that attendance would fall no more than 10%, which would produce about $22,000 per month, or an additional $24,000 per year. 3. Increasingly critical is the need for refurbishment and remodeling of systems, facility and fixtures. This need has been cited by several board members in surveys as very important. Most campus systems have significantly exceeded their life expectancy. Failure to replace these systems will result in much higher emergency maintenance costs, higher operating costs, and declining revenues if events are disrupted. Moreover, changing codes have made the facility non-compliant with ADA regulations, the facility design could be significantly improved to enhance functionality and safety, and aged fixtures reduced attractiveness and ambiance of the facility. Maintaining the facility will ensure continued revenue streams from current programs. It is imperative that items a-c be performed as soon as possible. a. Replace HVAC b. Address all Life Safety and ADA code issues c. Replace/refurbish elevators to ensure reliability and meet ADA requirements d. Address inadequate restroom facilities e. Remodel lobby, expand modestly f. Replace lighting, sound, and upgrade technology throughout the campus g. Refurbish/replace theater seating, curtains, carpet and other interior finishes 33

4. Modest expansion should be undertaken by finishing the basement of Childrenâ&#x20AC;&#x2122;s Museum. The space is currently used for storage, but it could be put into service and become revenue producing space. There is nearly 2,000 square feet that could be utilized for classrooms, studios, or additional exhibit space. Much less expensive storage could be obtained. Payback period from this expansion due to new revenue streams is estimated to be less than 10 years. 5. In order to increase revenue streams and expand offerings to the community, it is recommended that the Arts Center expand. Expansion could be accomplished in phases. a. The first phase would involve refurbishing the Jackson Conference Center to offer improved studio space, dressing rooms, restrooms, and lobby space. 6. The second phase recommended would completely renovate the Helen T. White building, add exhibit space, collection care areas, upgrade restrooms and ensure ADA compliance throughout. 7. The third phase would connect the campus buildings with an atrium structure proposed by HGF Architects. The structure could serve many functions nearly year-round while offering relatively low cost for the area covered: a. Indoor area for revenue-producing concerts, plays speaking engagements, weddings, festivals, exhibits, street artists, etc. b. Access can more easily be controlled, improving security and safety for all buildings, and requiring patrons to pass through specific inlets, ensuring all revenues are collected. c. Add needed restrooms. d. Design could reduce utility and operations costs. e. Improve way-finding; a central desk to provide better information for all. 8. Included in the third phase or possibly an additional fourth phase is expansion of the campus to the north to occupy the entire city block. This space includes the building that currently houses the Greater Pueblo Chamber of Commerce, and the former Rojas Restaurant. The Rojas building space is better used as a parking area, especially for handicapped, and for storage buildings. All refurbishing, remodeling and expansion activities recommended for the Arts Center are most appropriately viewed as an investment in our community. An economic impact study is forthcoming, and preliminary data suggests that any money invested by local governments in arts centers are returned by a factor of up to 10-fold. Oxford Economics (2017) identify museums and the arts as contributing almost $50 billion annually in economic impact nationally, far exceeding the direct input of resources. Oxford Economics researchers estimate the jobs multiplier of museums to be 2.0, and the value added multiplier to be 3.2. Moreover, each job created in this industry adds $16,495 in tax revenue of all sources, and an estimated $5,498 for state and local taxes. The economic activity that surrounds an Arts Center makes a community more attractive to tourists, local citizens and relocating businesses alike, and is an important economic engine for an area that is engaged in gentrification. A vibrant, thriving arts center makes for a vibrant, thriving community.

FINANCIAL AND PERFORMANCE METRICS DATA Sangre de Cristo Arts & Conference Center Attendance Statistics

2013 Helen T. White Galleries 15,410 Buell Children's Museum 33,990 Rental Attendees 29,958 Theater 4,762 Education Classes 1,728 School of Dance 486 Outreach n/a TOTAL 86,334

2014 2015 2016 22,399 19,269 27,823 54,255 35,841 32,162 41,396 45,459 42,144 4,140 12,588 8,353 1,693 4,656 5,292 3,601 6,843 5,223 n/a 344 n/a 127,484 125,000 120,997

2017 13,694 31,288 53,349 13,846 11,737 2,958 549 127,421

Number of Visitors to the Arts Center

SANGRE DE CRISTO TOTAL ATTENDANCE BY MONTH, GROUPED BY YEAR

Helen T. White Art Galleries

*2016 featured the Ansel Adams Exhibit

THIS IS GRAPH COMBINES ATTENDANCE FOR VISITORS AND TOURS, COMBINED

The data from previous graph can be divided into two categories: Visitors and Tours

*Ansel Adams Exhibit

Buell Childrenâ&#x20AC;&#x2122;s Museum

Theater Data

Sangre de Cristo Arts & Conference Center Number of Rentals

Rentals

2013 236

2014 129

2015 208

2016 209

2017 274

Assets â&#x20AC;&#x201C; Actual and Common Size YEAR: Changes in Unrestricted Net Assets

2015

2015%

2016

2016%

2017

2017%

Contributions

520,175

21.92%

$372,633

15%

398869

14.53%

Government appropriations

535,655

22.58%

$548,911

22%

628126

22.88%

Grants

145,218

6.12%

$62,000

95000

3.46%

Membership Fees

163,538

6.89%

$152,056

154878

5.64%

0.00%

$5,135

12460

0.45%

Support and Revenue

In-kind revenue Ticket Sales

261,009

11.00%

$321,254

13%

247919

9.03%

Education

143,645

6.05%

$172,543

142504

5.19%

Merchandise Sales

211,482

8.91%

$210,991

233961

8.52%

Rentals Investment Income Unrealized Investments Miscellaneous Net Assets from restrictions Total Unrestricted support and revenue

206,407 194,542 -91,448 53,688 28,643

8.70% 8.20% -3.85% 2.26% 1.21%

$209,853 $153,714 $23,016 $81,274 $214,018

8% 6% 1% 3% 8%

280058 188065 27000 35015 301464

10.20% 6.85% 0.98% 1.28% 10.98%

$2,372,554

100.00%

$2,527,398

100%

$2,745,319

100.00%

413884 309928 264930 226469 270373

16.77% 12.56% 10.74% 9.18% 10.96% 0.00% 36.44% 1.68% 0.00% 1.67% 100.00%

509439 389015 237018 300242 275644

18.19% 13.89% 8.46% 10.72% 9.84% 0.00% 36.80% 1.16% 0.00% 0.93% 100.00%

297279 207153 125240 275461 180838

12.25% 8.53% 5.16% 11.35% 7.45% 0.00% 52.65% 1.81% 0.06% 0.74% 100.00%

Expenses Programs Education Exhibition Performance Facilities rental Children's Museum Support Services General administration Fund Raising Miscellaneous Cost of merchandise Total Expenses Change in unrestricted net assets

899164 41439 41114 $2,467,301 -94,747

1030507 32510 26012 $2,800,477 -273,079

1278129 43836 1575 18051 $2,427,562 317,757

1400000 1200000

Expenses

Expenses (Dollars)

1000000

800000 600000 400000

2015 2016

200000

2017

Programs and Supporting Services

700,000 600,000

Changes in Unrestricted Net Assets

500,000

Net Assets (Dollars)

400,000 300,000

2015

200,000

2016

100,000

2017

-100,000 -200,000

COMMON-SIZE STATEMENTS 45

from page 14 of 2017 audit

Assets

Art Center Endowment

Total

Assests

Current Assets Cash and Cash Equivalents Investments Accounts receivable

549411

1111

550522

1746248

2972349

4718597 31702

900

Inventories

12195

Prepaid Expenses

58051

Total Current Assests

2398507

2973460

Cash and Cash Equivalents Investments

Buildings

5.96%

0.04%

4.52%

18.95%

99.96%

38.71%

Accounts receivable

0.34%

0.26%

Pledges receivable

0.01%

12195

Inventories

0.13%

0.10%

58051

Prepaid Expenses

0.63%

0.48%

5371967

Total Current Assests

Property and Equipment Land

Total %

Current Assets

31702

Pledges receivable

Art Center % Endowment %

Property and Equipment 18500

18500

2444220

Land Buildings

0.20%

0.15%

26.52%

20.05%

Leasehold improvements

1135093

Leasehold improvements

12.32%

9.31%

Furniture and Equipment

1349429

Furniture and Equipment

14.64%

11.07%

Total Property and Equipment -34.03%

-25.73%

Total Property and Equipment

4947242

-3135888

1811354

900

Art Collection

5005596

Art Collection

Total Other Assest

5006496

Total Other Assest

Total Assets

9216357

2973460 12189817

Accumulated depreciation Net property and equipment

Other Assets Long term pledges receivable

Total Assets

Liablilities and Net Assets

0.01%

54.31%

41.06%

100.00%

100.00% 100.00%

Liablilities and Net Assets

Current Liabilites

Accounts Payable

12659

Accounts Payable

0.14%

0.10%

Accrued Liabilities

57766

Accrued Liabilities

0.63%

0.47%

Deferrred Revenue

169481

Deferrred Revenue

1.84%

1.39%

Total Current Liabilities

239906

Total Current Liabilities

Net Assets

Unrestricted Operating

Unrestricted 586122

586122

Board Designated

6023513

Fixed Assets

1811354

Total

8420989

204837

Temporarily Restricted

508987

2768623

Permanently Restricted

46475

8976451

2973460 11949911

Total Net Assets

Total Liabilities & Net Assets 9216357

2973460 12189817

Total Liabilities and Net Asse

Total Net Assets

204837

Operating

6.36%

4.81%

6228350

Board Designated

65.36%

1811354

Fixed Assets

19.65%

8625826

Total

3277610

Temporarily Restricted

5.52%

Permanently Restricted

0.50%

0.38%

100.00%

100.00% 100.00%

6.89%

51.09% 14.86%

93.11%

26.89%

Estimated facility Utilization Utilization is determined by calculating the amount of time available for each activity, the capacity for each activity, and how much of the capacity is used during operational hours. Galleries include rentals, tours and visitor admissions. Total average utilization for all areas of the Arts Center is estimated to be 54.3%. Utilization of a service activity such as a museum is typically much lower than for a manufacturing facility. Manufacturing facilities may experience utilization rates in excess of 80%. For normal gallery operations, utilization above 30% is acceptable. It is difficult to gain utilization of any activity greater than 75% due to time conflicts of when clients choose to book, and when their event dates are scheduled. Expanding operations creates more opportunities to accommodate a wider range of client preferences. Estimated Utilization percent

Expansion Potential Utilization

Children's Museum

32.74%

Helen T. White Galleries

51.43%

Rentals Average Utilization

60.40%

Rentals 2017

64.11%

Rentals 2016

61.20%

Rentals 2015

55.89%

45.86%

FINANCIAL COMPARISONS OF OTHER CENTERS 2016

Cash and cash equivalents

Fund for the

Cristo

Arts - Louisville Players Inc. Art Center Cristo 335,581

Investments

4,351,470

Total Assets

11,733,245

Total Liabilities

2017

Sangre De

203,339

Manatee

449,793

Rochester Sangre De Fund for the

824,591

2,674,669 n/a

50,747 n/a

550,522 4,718,597

Manatee

Arts - Louisville Players Inc. Art Center 516,531

279,308

2,542,621 n/a 9,634,466 18,570,182

4,909,866

4,733,370

221,450

239,906

37,298 n/a

8,981,450 18,828,319 6,225,965 12,189,817 7,249,094

Rochester

6,004,046

6,529,929

134,256 5,869,790

Total Net Assets

11,529,906

4,071,584 11,579,225 6,004,515 11,949,911

4,901,096 12,040,253

Total Liabilities and Net Assets

11,733,245

8,981,450 18,828,319 6,225,965 12,189,817

9,634,466 18,570,182

6,004,046

1,417,802

1,339,696

3,994,646

1,003,578

5.36%

1.50%

Total Expenses Cash and cash equivalents

2,800,477 2.86%

Investments

37.09%

Total Assets

100.00%

Total Liabilities Total Net Assets Total Liabilities and Net Assets Total Expenses

3,245,059 1,271,584

5.01%

4.38%

29.78% n/a

0.82% n/a

100.00%

2,427,562 4.52% 38.71%

100.00%

26.39% n/a

0.62% n/a

100.00%

1.73%

54.67%

38.50%

3.56%

1.97%

49.13%

35.16%

2.24%

98.27%

45.33%

61.50%

96.44%

98.03%

50.87%

64.84%

97.76%

100.00%

23.87%

15.79%

17.23%

20.42%

19.91%

13.91%

21.51%

16.72%

The arts centers selected for this comparison were based on availability of online financial documents posted by the respective center. A more comprehensive analysis of Forms 990 of approximately 20 similar institutions is in process and will be available by 12/31/18 as an amendment to this document. This comparison suggests that the Sangre de Cristo Arts Center is performing very well financially compared to other arts centers. Cash on hand is relatively low, and investments is relatively high, indicating that money management practices are seeking to gain return on short-term uncommitted resources, and avoiding opportunity costs. The 47

amount of Net Assets places the Arts Center in a very strong financial position. Moderate expansion and renovation could be undertaken without significant negative impact to their financial situation. Liabilities is the lowest of the group, which will reduce interest payments. It may be acceptable to consider a small to moderate amount of debt (in the 25-35% range) to fund expansion, if cash flows from the expansion are projected to be large enough to service debt and interest payments.

Appendix 1. 2. 3. 4. 5.

HGF Costing Update Economic Impact â&#x20AC;&#x201C; Preliminary Statement Letter to City Council Biographies References

ECONOMIC IMPACT - PRELIMINARY STATEMENT This preliminary Economic Impact Statement measures direct and indirect economic impact of the Sangre de Cristo Arts Center on the local community of Pueblo. This statement is considered preliminary because more observations are needed in two categories to increase reliability of the estimate: attendees and visiting artists. Additional observations are scheduled to be collected through February, 2019, and visiting artists from the past year will be surveyed. Based on comparisons to calculations from an algorithm calculator developed by Americans for the Arts, the current estimates additional expenditures by attendees in this report yield a margin of error of slightly more than 3% with a 95% confidence interval. This is based on 127,000 attendees (minimum sample = 1033). The surveys of three visiting artists is a very small sample, and the confidence in this estimate is extremely low. However, at an impact ratio of 10% of the estimate of visiting artists’ expenditures relative to attendees, any change in the impact of visiting artists is low, so the effect on total impact should not significantly change the overall impact. In order to establish an overall margin of error of 2%, a sample size of 2357 attendees and 150 visiting artist groups is required. ATTENDEES SURVEYS Attendees of various events at the Sangre de Cristo Arts Center, from September through December, were randomly selected to answer a short survey. Survey participants were allowed to opt-out, so self-selection bias may be present. Indeed, some of the participants declined saying, “we’re not from the area, so we aren’t interested in taking the survey.” Because of the self-selection bias, it is possible that the actual impact is higher than estimated here. Surveyors intercepted attendees and asked questions directly to expedite and ensure survey completion. Attendees self-reported their estimates of expenses while visiting Pueblo. Overview statistics: 356 surveys, representing 1033 individuals 932 local residents 101 non-local residents (from outside Pueblo County) Based on these survey results, approximately 10.84% of visitors to the Arts Center are from outside of Pueblo County. Of the 101 non-local residents responding, their self-report of expenses totaled $18,087 for their collective stay in Pueblo, or an average of $179.08 per person. The Arts Center reported 127,421 total visitors during 2017. Extrapolating the percentage of non-local residents to the total number of visitors, it is estimated that 13,812 were non-local. 127,421 * 0.1084 = 13,812 The calculated number of non-local visitors is multiplied by average expenditure per Pueblo visit to determine the raw amount of expenditures, which is calculated to be $2,473,452.96. 13,812 * $179.08 = $2,473,452.96 Direct Impact (subject to multiplier) In developing an economic footprint for Vermont Arts Council, the Center for Policy Analysis, University of Massachusetts Dartmouth (2014) used the economic program IMPLAN to calculate the economic impact. The calculations of the IMPLAN software produced an overall economic impact of 1.8125. Stated differently, every dollar spent in the community was new money that was subsequently re-spent, creating additional sales and 53

employing additional workers, creating a total leveraged amount of just over $1.81. Thus, the incremental indirect multiplier is 0.8125. Additional Indirect Impact of attendees: $2,473,452.96 * 0.8125 = $2,009,680.53 VISITING ARTIST SURVEYS Surveys were administered to visiting artists to determine their total expenditures during their stay in Pueblo. Surveys were included with artist contracts, and artists were asked to return the survey with their signed contracts. Overview statistics: 4 surveys were returned, representing 4 groups, and 35 individuals. Total estimated expenditures in Pueblo by these three groups is $4,552. Average expenditures per group is calculated to be $1374.33. This average expenditure is extrapolated to the expected number of 159 events held at the Arts Center for the entire year. Total expected visiting artist expenditures amount to $180,942. 159 * $1,138 = $180,942 Direct Impact (subject to multiplier) Additional Indirect Impact of visiting artists: $180,942 * 0.8125 = $147,015.38 Payroll The gross payroll for Sangre de Cristo Arts Center for 2017 is $1,069,220. Gross Payroll: $1,069,220 Direct Impact Note: A portion of this payroll would qualify for the multiplier effect. That portion would be the same percentage as the amount of attendees from out-of-area. This percentage of the payroll is equivalent to primary jobs, since some of the revenues are from outside of Pueblo. Indirect impact of jobs is 10.84% of gross payroll increased by the multiplier amount. ($1,069,220 * 0.1084) * 0.8125 = $94,171.55 Goods and Services Those items purchased by the Arts Center from local providers. Goods and services purchased in 2017: $833,000 Direct Impact 54

Indirect impact of goods and services is 10.84% of goods and services expenses increased by the multiplier amount. ($833,000 * 0.1084) * 0.8125 = $7,336.65 Volunteer hours Volunteer hours recorded in 2017 were 4,493. Value of volunteer hour in Colorado in 2017, according to independentsector.org: $26.78 Value of volunteer time = $120,322 Indirect Impact In-Kind Donations In-kind donations to the Arts Center for the calendar year amounted to $57,746.59. Value of in-kind donations = $57,746.59 Indirect Impact Estimated Local Tax Revenue Generation Americans for the Arts has created a calculator to estimate the amount of local tax revenue generated by an arts center. The estimated amount of tax generated in the Pueblo area using this calculator is $197,667. Estimated Local Tax Revenue Generation = $197,667 Indirect Impact Additional Considerations â&#x20AC;&#x201C; Not Included in Economic Impact Calculation Estimates Not included in economic impact calculations is household income paid to others in conjunction with attending an Arts Center event, e.g., babysitting, transportation costs, parking, dinner or desert before/after events, etc. TOTAL IMPACT Direct Impact: Attendees Visiting Artists FTE JOBS Goods and Services Purchased Subtotal Direct Impact

$2,473,452.96 180,942.00 1,069,220.00 833,000.00 $4,556,614.96

Additional Indirect Impact and Multiplier Amounts: Attendees Visiting Artists % FTE JOBS % Goods and Services Value of Volunteer Hours In-kind Donations Local Tax Revenue Generated Subtotal Indirect Impact

$2,009,680.53 147,015.38 94,171.55 7,336.65 120,322.00 57,746.59 197,667.00 $2,633,939.70

Total Estimated Direct and Indirect Economic Impact = $7,190,554.66

Comparison to Americans for the Arts Algorithm Calculator Estimate According to a calculator algorithm created by Americans for the Arts, inputs of population = 160,000 and attendance of 127,000 produced these estimates: Total Industry Impact (multiplier not used): $4,324,674 FTE Jobs created: 138.8 Household Income Generated: $3,000,466 (equivalent to indirect impact) Local Government Revenue Generated: $197,667 State Revenue Generated: $223,269 It is interesting to note that total impact of Total Industry, Household Income, and Local Government Revenue produce an expected local impact of $7,746,076. Compare to the calculated preliminary estimate of $7,190,554.66

MALIK AND SEEME HASAN SCHOOL OF BUSINESS

2200 BONFORTE BLVD. PUEBLO, CO 81001-4901 t: 719.549.2142 f: 719.549.2909

September 25, 2018 Michael W. Wakefield, Ph.D. Professor of Management Director, Thomas V. Healy Center for Business and Economics Research and Services Hasan School of Business Colorado State University 2200 Bonforte Blvd Pueblo, CO 81001 (O)719.549.2933; michael.wakefield@csupueblo.edu Pueblo City Council Members City of Pueblo 1 City Hall Place Pueblo, CO 81003 Dear Councilman Nicoll: I am hopeful in writing to you that you will consider my observations in evaluation of the Sangre de Cristo Arts and Conference Center (SDC) funding request of $250,000. I and four Healy Fellows (students working in the Healy Center) have been working since the beginning of the year with CEO Jim Richerson and his entire staff, conducting a strategic analysis, preparing a marketing/business plan, and conducting an economic impact study. I believe that the observations I share with you can demonstrate that management of the SDC engages in excellent custodianship of resources, and that the SDC is a significant economic driver within our community. Through our strategic analysis, which includes a financial assessment, it became clear that under Mr. Richersonâ&#x20AC;&#x2122;s leadership, SDC has increased its level of responsibility in oversight of financial resources, will bolstering the programs offered. Mr. Richerson has discovered ways in which to contain expenses without comprising programs, or staff compensation. His innovations, ambition and contacts lead to very popular exhibits brought to SDC that includes unique displays of the work of Ansel Adams, and a history of animation. Not only do the various exhibits and performances offered enhance the quality of life for Puebloans, but they attract visitors from outside Pueblo, increasing the economic impact of SDC. SDC is working diligently to improve its financial condition through a layered financing approach. At the base is funding through local governments. This support has been steadily declining and has dropped below 20% of SDCâ&#x20AC;&#x2122;s total budget. Fundraising through various functions have been successful. Donors, benefactors and grants account for about 15% of the budget. Other sources of revenue include ticket sales, membership fees, facilities rentals, and merchandise sales. Perhaps the biggest challenge facing SDC is the age of its physical plant, with many pieces of equipment now at 110-150% of their useful life. Current financial resources provides adequately for operations, but looming capital equipment expenses present potential future problems. 57

Studies show that the impact of arts in any community are substantial (Museums as Economic Engines: A National Report, American Alliance of Museums, 2017). Museums nationally support 372,100 jobs, generates $15.9 billion in income, and are further supported by millions of services hours per week by volunteers. The study finds that more than $50 billion in economic contribution to GDP was supplied by museums, and produced more than $12 billion in local taxes. While we are still working on the economic impact portion of our work, it appears that the economic impact of SDC on the Pueblo economy will exceed total funding by a factor of at least two. If we factor out funding from local government to determine the community return on investment, based on the financial analysis, government contributes no more than one-fifth of the total budget. In essence, through management of resources, SDC is able to convert those resources into a 1000% return, or ten times the local government investment. Arts are also shown to be important attractors for creative segments, and can be a critical tipping point in attracting other industries. We must exercise caution to not underestimate the potential economic contributions made possible by SDC. Through our strategic analysis, we discover that SDC is poised to take advantage of significant strategic opportunities, only if adequate funding is obtained. SDC is currently working on partnerships with other entities in town such as the Pueblo Zoo and other museums to create synergies. It is our desire to continue working with SDC over time to help them find grants and funding that would allow them to expand operations. At the same time, I encourage all members of Pueblo City Council to give serious consideration to SDC for funding requests. It is entirely appropriate to look at any monies allocated to SDC not as an expense, but as an investment for Pueblo. An investment that can provide a return ten times the amount allocated, and can provide untold benefit in additional incentives for businesses to perceive Pueblo as an attractive alternative. I would be pleased to answer any questions you may have for me. Contact me at your convenience using any of the methods provided in the heading of this letter. With kind regards,

Michael W. Wakefield, Ph.D.

3. Biographies: CSU-Pueblo Healy Fellows & Director Noah Commerford Noah Commerford is a junior pursuing a degree in both business management and political science at CSU Pueblo. He graduated from Pueblo West High School as a Silver Chord student in 2016. Noah is a proud member of both the Healy Center and the Dean’s Advisory Council. Noah dreams of opening a restaurant and becoming a politician who has integrity and leadership to devote real change. As a Pueblo native, Noah plans to contribute heavily in the Pueblo community in order for Pueblo to continue growth economically and socially. Joey Gavato Joseph (Joey) Gavato is a junior and is planning to graduate with a degree in business management with an emphasis in marketing. He is hoping to begin the 3 Plus 2 program to graduate with his master’s in business. He is minoring in leadership studies and Italian. He is a proud member of the President’s Leadership Program, Pack Catholic, and has been with the Healy Center for three years. As a Pueblo native, Joey remembers coming to the Children’s Museum as a child, and bringing home ridiculous, elaborate, and fun creations. During his middle school years at Connect, Joey remembers coming to the Arts Center on field trips to view the art exhibits. For the past six years, Joey has participated in the Pueblo Summer Musical. During this time, he has many fond memories and experiences housed within the stage at the Arts Center. With almost every aspect of the Sangre de Christo Arts Center having an impact on his life, Joey is looking forward to being able help the Arts Center on the consulting project. His hope is this project helps the Sangre de Christo Arts Center so they can continue to impact the lives of people within the Pueblo community the way it has impacted his life. Dillon Martin Dillon Martin is from La Junta Colorado, joined the Healy Program in the fall 2017. Martin is a graduate of Swink High School and Otero Junior College (OJC). He works at OJC part-time while attending school at CSU-Pueblo. He is working towards completing his bachelor’s degree in economics and finance. In his free time Martin enjoys off-roading and rock crawling in his Polaris RZR. He and his family enjoy attending multiple off-roading rallies a year and camping.

Greg Wakefield Greg Wakefield is a senior business management student at Colorado State University Pueblo. He is also currently a Financial Service Representative at Sunwest Credit Union, a professional DJ, and a consultant for the Thomas V. Healy Center for Economic Research and Development. He is a member of Beta Gamma Sigma, and the National Society for Leadership and Success. Gregâ&#x20AC;&#x2122;s immediate goal is to be accepted into the MBA program at CSUP. Another short-term goal is to grow his business, Superior Sound Services, to cover all of Southern Colorado and become the premier company for music, lighting, and sound equipment. He aspires to one day become a serial entrepreneur, owning and launching many new businesses. Mike Wakefield Mike has been at CSU-Pueblo since August 2000, where he is a Professor of Management in the Hasan School of Business at CSU-Pueblo, and Director of the Healy Center for Economic and Business Research and Services. Mike earned both a bachelorâ&#x20AC;&#x2122;s degree in Marketing and an MBA from New Mexico State University, and a Ph.D. in Strategic Management from the University of Nebraska at Lincoln. He teaches primarily Entrepreneurship and Consulting, where he has guided students in more than 100 applied entrepreneurial and small business projects ranging from business plan development, feasibility studies, economic impact studies, market analyses and operations analyses to human resource manuals and templates for GPS systems to track conditions of sidewalks citywide for our local municipality. Through the Healy Center he delivers an annual economic forum that includes a business sentiment survey, and we conduct an annual entrepreneurship competition, now in its 6th year. His research interests include economic development, entrepreneurship start-up and management, family business concerns, service and experiential learning, and future directions of teaching approaches in higher education. Mike is active in the community, delivering the local portion of the Economic Forum since October 2015. He also has served, or is serving, for the following institutions: Board of Directors for Junior Achievement, Advisory Council for PCC Small Business Development Center, Advisory Council for the Department of Nursing at CSU-Pueblo, founding member of the board for Start-Up Pueblo, a member of Pueblo Rotary 43, a member of the Pueblo Catholic Diocesan Pastoral Council, and he is active in music ministry at St. Paul Catholic Church. Mike lives in Pueblo West with Kay, his bride of 28 years and is the proud father of Greg (21), and Elizabeth (14).

REFERENCES Americans for the Arts Economic Impact Calculator (2018). Retrieved from: https://www.americansforthearts.org Census Quick Facts (2018). Retrieved from: https://www.census.gov Center for Policy Analysis, University of Massachusetts Dartmouth (2014) Vermont City Council Economic Footprint. Retrieved from: https://www.vermontartscouncil.org David, David and David, (2017). Strategic Management: A Competitive Advantage Approach, 17th, ed., Pearson: Essex, England. HGF Architects, (2017). 2017 Sangre de Cristo Arts and Conference Center Master Plan, prepared by HGF Architects, Inc. Oxford Economics, (2017). Museums as Economic Engines: A National Report. An Economic Impact Study for the American Alliance of Museums. Vandenberg and Pietersma, (2015). Key Management Models: The 75+ Models Every Manager Needs to Know, 3rd ed., Ashford Colour Press, Ltd.: Gosport, England.