ESCONDIDO: City says closing arts center an overrated idea

Budget crisis has increased criticism of $3 million subsidy

By DAVID GARRICK - Staff Writer | Saturday, June 14, 2008 6:03 PM PDT

ESCONDIDO ---- With Escondido facing its worst budget crisis in at least 15 years, some have suggested that the city should temporarily shut down its struggling performing arts center in order to save nearly $3 million annually.

They contend that tough economic times call for redirecting the annual arts center subsidy into the shrinking budgets of the Fire Department, Police Department, the city library and recreation programs.

City officials said last week, though, that shutting down the facility for a few years would be a crushing blow to downtown revitalization efforts, would include many hidden costs and would break a promise to city voters who agreed in 1985 to pay for the $81 million facility.

"You would have a major asset just sitting there decaying and growing weeds," said Councilman Dick Daniels. "Having the arts center look like a ghost town wouldn't do the city's downtown any good."

City officials and arts center advocates also said the idea of "mothballing" the facility is based on a misconception that it should make money, when the center has always been envisioned as an economic catalyst for downtown that was unlikely to ever break even.

"Those people saying we ought to mothball it don't get the point of the exercise," said Kathy Rubesha, chairwoman of the arts center's board of trustees. "It was intended as a major economic development tool for the downtown, and that's exactly what it has been."

Deep cuts spur ideas

Councilman Ed Gallo said that every time the city faces a budget crisis, he gets letters and calls from people saying the city should shut down the arts center, which opened in 1994.

The outcry has been more pronounced this spring, said Gallo, with the city facing a projected $9 million deficit in its $85 million budget for fiscal year 2008-09. City officials have blamed the deficit on sharp drops in sales tax revenue at auto dealers and shopping centers.

City departments have been forced to slash 7.5 percent from their budgets, most city employees have been denied pay increases, and city officials decided to reduce the number of firefighters hired when a new station opens this summer.

"Funding for the arts center has always been a source of contention," said Paul Woodward, president of the Escondido Police Officers Association. "It's a major drain on city resources at a critical time of budget cuts. The city has no money for employee pay increases."

Woodward said his union does not endorse shutting the center down, but he suggested the city should be especially careful about curtailing increases in the arts center's subsidy.

The city has provided the arts center a $1.3 million subsidy each year since it opened. But utilities and maintenance for the arts center campus cost the city another $1.2 million each year.

And the overall subsidy typically climbs to about $3 million because the arts center has run a deficit during 12 of its 14 years of operation, including a deficit of $412,000 in fiscal year 2006-07 and a projected deficit of $600,000 during 2007-08.

Hidden costs

But city officials said it would be oversimplifying things to think shutting down the arts center would give the city an extra $3 million each year to spend on other programs.

"It sounds like an easy solution and it comes up a lot, but it would not be a good financial move," said City Manager Clay Phillips.

Phillips and other city officials said there would be hidden costs in shutting the facility. They said, for example, that abandoned buildings decay more quickly, that the city would have to break contracts with acts booked well into the future, and that rehiring lighting experts and other technical employees would be extremely difficult when the city decided to revive the center.

"It's not like we can shut the doors and just get out of it," said Gallo. "And we can't let it start looking terrible."

Shutting the center would also starve downtown businesses of the many thousands of people who visit the arts center each year, he said.

Mayor Lori Pfeiler said shutting the center would also hurt community spirit.

"When you ask people about the arts center, most of them tell you how proud they are to have it in Escondido," said Pfeiler. "Just like our libraries and our parks, this is a great amenity that we need to support."

Pfeiler also said the arts center has played a crucial role in attracting businesses, restaurants and condominium complexes to downtown Escondido.

An economic catalyst

"Downtown Escondido did not start prospering until the arts center opened," said Pfeiler. "We would not have all these condominium projects and Marriott would not be building a luxury hotel here if we didn't have the center. People want to live where something is happening."

Larry Kimball, director of hotel development for C.W. Clark, said his company would not have considered building a seven-story Marriott in downtown Escondido without the arts center.

"It will be a symbiotic relationship," said Kimball. "The arts center is an asset that is borderline irreplaceable."

When Barratt American decided a few years ago to build the 92-unit Paramount condominium project and the 82-unit Venue project catty-corner to the arts center, company officials said the facility was the main impetus for the projects.

Downtown merchants often credit the arts center with reviving Grand Avenue, which was filled with boarded-up businesses in the early 1990s.

Debra Rosen, chief executive of the Downtown Business Association, said last week that the arts center has brought "a diversified audience" to downtown and given businesses a leg up on other communities.

Even Councilwoman Marie Waldron, who has been a harsh critic of the center and who promised voters she would never increase the center's subsidy, said it should not be shut.

But Waldron said the city should consider having fewer performances during the slow winter months, and she said the center cannot be allowed to continue running large annual deficits.

Daniels and Gallo, who serve on the council's arts center subcommittee, said they are working out a new marketing and fundraising strategy that could make those deficits go away.

"We can make it more self-sufficient by regionalizing its appeal and regionalizing who supports it," said Daniels, contending that coastal North County residents should realize there is no other venue in the area like the arts center. "We have got to stress to people that it's a worthy thing to subsidize."

Gallo said the center should also market to the 500,000 people living in southwest Riverside County.

"Unfortunately, this arts center is one of the best-kept secrets in the area," said Gallo. "Many, many people have no idea it's there."

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.

Should the city close its performing arts center until the economy recovers?

Argument in favor:

-- Saving about $3 million a year that could be spent on police, firefighters, libraries and other programs

Arguments against:

-- Decaying building would hurt downtown merchants and repel new businesses

-- Loss of cultural resource

-- Would break promise to Escondido residents, who voted for center and paid for construction

-- Costs to revive a closed center would be steep

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Hannah wrote on Jun 14, 2008 7:37 PM:An expensive jet reaching a certain point must take off, must fly to its full potential--or crash into a useless multi-million dollar junkheap. The trajectory of the arts center is to become a cultural magnet for inland North County. It will take financially saavy management to MAKE this happen, and it can, if residents don't get weak-willed when the bill and seeming unsophistication of Escondio residents (a cultural magnet attracts those from wealthy communities, as well as locals) generate calls to take the potential $3 million now, instead of potentially hundreds of millions in the future. It's when the opposition is the worst when the original vision must pervail. Esondido is full of "747's" that have been cut short just as they were reaching the point of no return--the colorful condos being one. Nothing can be put in the great arts center buildings that would generate enough money to make them pay for themselves. The only thing to do is shore up, go full throttle, and do anything and everything to make it fly to its full potential.

FourWalling wrote on Jun 14, 2008 7:41 PM:It's called four-walling. Cut back to minimum staff, dumping all the big-buck administrators. Bring in an outside promoter to book the place. Let the promoter hire the necessary staff for the performances. It's a solution often used with money-losing performing arts venues, and it usually works because the promoter has a profit incentive, actually understands show business, and can spread costs across multiple facilities. Even with guarantees and/or subsidies for the promoter, the worst case scenario is that you'd lose less money than we're losing now.

JR wrote on Jun 14, 2008 8:19 PM:WHO SAYS WE WANT IT REVIVED?? LET'S SHUT IT DOWN AND MAKE A PORTION OF IT A LIBRARY AND LEASE THE REST OF IT!! CCA IS A DRAIN ON ESCONDIDO. YOU CAN'T JUSTIFY A DEFICIT 12 OUT OF 14YRS.

Dont clsoe the arts center. wrote on Jun 14, 2008 9:48 PM:I've been to the Arts center many times for a show. My favorite were the Russian dancers. Anyway, there are lot of civic center's in San Diego so compettion is tough. People always critize Escondido for anything, I bet if the City wanted to build a drinking fountain on some street, people would complain so screw them. Stick to the vision, look toward the futre.

My vote wrote on Jun 14, 2008 10:41 PM:is to close the Center for the Arts. Its a no brainer.

Floyd wrote on Jun 14, 2008 10:51 PM:Perhaps the city of Escondido should sell the arts center. A private company would be more likely to book compelling acts, advertise effectively, and provide the city with much-needed tax revenue in the process.

ALWAYS EITHER-OR wrote on Jun 15, 2008 12:01 AM:Typical political, beaurocratic BS. People kneejerkingly call for the Center to be shut down because THEY ARE TIRED OF THE DECADES OLD MISMANAGEMENT BY CENTER STAFF and the CITY COUNCIL & CITY STAFF!

As usual, there is a strong dismissal about closing the Center down by the Center/City types. Logical, intelligent, experienced, positive people (leaders) look for the middle road in these kinds of conditions.

THE MAIN ISSUE IS THE SUBSIDY and the FAILURE OF THE CENTER BOARD/STAFF TO RAISE MORE MONEY and PROGRAM IT SUCCESSFULLY.(Not just strike 3, but STRIKE 12!)

Going back to the beginning of the Center and the City's assistance in funding of it... it was supposed to be a 1/3 city, 1/3 annual fundraising, 1/3 interest from the endowment fund plan. BUT... the City allowed the Center Board/Staff to SPEND 100% of the ENDOWMENT FUND on operations way back when. From that point on, the City seems to have given up on FORCING THE CENTER BOARD/STAFF TO RAISE THE MONEY NEEDED TO OPERATE IT (2/3 share!)

Some people want it closed, because they have completely lost confidence in BOTH the ever changing CENTER STAFF and the CITY COUNCIL/STAFF to make the Center work.

It may have been partially successful, BUT IT HAS NOT SUCCEEDED PER THE ORIGINAL PLAN PUT TO THE VOTERS (and at what a cost!)

Longtime resident wrote on Jun 15, 2008 12:20 AM:When the Arts Center was first proposed in 1985, it was sold as being the answer for Escondido's economic problems. We were desperate for a solution to a problem we had caused by sending our economic base out of downtown and to the southern border of town (North County Faire).

Instead of an economic solution, we have gotten an black hole which siphons a money and energy from other programs which also need attention.

The answer to Escondido's problems is high quality, consistent fiscal management, which includes such things as
- providing quality community services for people of all ages, including teens;
- providing a welcoming community where all types of people would want to live;
- giving proper attention to our police and fire services, without making them the only priority of the city;
- ensuring that new development pays their fair share to maintain the city's quality of life

Closing the Arts Center is certainly not the answer. It provides one piece of what could become a great City. But so many more pieces are needed.

Good, insightful management is the first.

To the Three stooges wrote on Jun 15, 2008 3:10 AM:every moment this council shows us that is not doing its job; we need a council that will represnt us properly instead of being playing their hate games.

Fool on the Hill wrote on Jun 15, 2008 3:20 AM:So it will remain a cold, hard monument to the falacy of the old saw - 'build it and they will come.'

Jaque wrote on Jun 15, 2008 7:25 AM:""Mayor Lori Pfeiler said shutting the center would also hurt community spirit.

"When you ask people about the arts center, most of them tell you how proud they are to have it in Escondido,"""

This is NOT the sentiment that prevails in the City of Excondido, she knows it, everybody knows it.

""Would break promise to Escondido residents, who voted for center""

Since when does gov't care about a "promise" made to voters over two decades ago? This is just another excuse conjured up to keep the swarm of people from asking about this white elephant.

Babs wrote on Jun 15, 2008 8:12 AM:Don't shut it down, make it more profitable by having events more afordabe. Most of us can't afford to go to the events offered. I try to scrape together to pay for occasional tickets. Perhaps businesses could offer discounted tickets. Have people suggest what events they would be willing to pay for there. I often go to see the Nutcracker eslewhere such as the Poway Center for the arts because it is not as expensive and there is no good dining near that facility like there is in Escondido. Ialso have taken my grandchildren to daytime events at The Center for the arts. If young kids don't have a place like tht to go to they will be less likely patrons of the Arts in the future.

Roger wrote on Jun 15, 2008 8:52 AM:The 7:41 PM post may have hit upon the solution. This is a great venue but, right from the start, has always booked whole seasons of pathetic shows. Either hire a talent buyer who has a clue or turn it over to an outside promoter.

Escondeeter wrote on Jun 15, 2008 8:56 AM:"Those people saying we ought to mothball it don't get the point of the exercise"

Silly me. And here I thought the point of the exercise was to operate it within budget instead of losing even more than you've been given to lose each year.

Mike wrote on Jun 15, 2008 9:22 AM:It's just a hunch but maybe if they'd book some shows that people actually want to see they could make money, or at least not lose as much.

Bob wrote on Jun 15, 2008 9:51 AM:Looked at their lineup. Who books this crap?

Wait a minute wrote on Jun 15, 2008 9:53 AM:What makes anybody think a private operator could make the arts center feasible if the present operation, with a $3 million city subsidy, can't do so? A private party isn't going to have that support. Best solution is to do what somebody suggested in the news article -- make the surrounding region more aware ofthe center and attract financial support outside our city from donors and patrons.

Sue wrote on Jun 15, 2008 10:05 AM:For a look at a good concert season look up Red Butte Garden in Salt Lake City.

Or, right here in San Diego County, look at Belly Up or Acoustic Music San Diego.

Bob wrote on Jun 15, 2008 10:50 AM:The 9:53 AM post suggests: "...make the surrounding region aware of the center...". While this may help, it doesn't address the main problem: THE CALIFORNIA CENTER FOR THE ARTS' CONCERT LINE UP REALLY SUCKS.

Take a look at Humphreys By the Bay, Anthology, Belly Up, Acoustic Music San Diego, or any of the Indian Casinos. These venues actually book shows that people want to see, and turn a profit.

Advertising the Art Center's pathetic line up isn't going to help any more than Charlie the Tuna's desperate ploys to convince the Starkist Tuna folks of his "good taste" ever worked out for him.

Find a new talent buyer.

Carter wrote on Jun 15, 2008 11:11 AM:Sounds as if Escondido has hold of a tiger's tail that will cost them a fortune as long as they hold on. If they turn lose it will cost them a fortune.
I would like to see the figures of how many downtown business' have failed, how many have moved to better sites, and how many depend on the Art Center for their profit, etc.
So, the traffic light cameras are now making a profit. Put one on every corner and more and more elderly drivers can be caught by the fraction of a second bandits. Perhaps you could have the Indians put slot machines in every store.
OK, the average citizen, which I am one of, does not have enough imagination to see how the Art Center is providing a catalyst for downtown business. Show me! And I mean provable data. All we can see is that that cash cow ain't bilking the public right.
Truthfully, I like the idea of the Art Center. It is a matter of pride for me. However, I squint my eyes and I see a shopping mall there with a parking building along side. Money makers - those!

To Wait A Minute wrote on Jun 15, 2008 12:06 PM:Nobody's saying the Center can be operated without some degree of a subsidy. It's not just a performing arts venue. It has an educational component, it subsidizes community arts activities, etc. It even has a profitable Convention Center business, although that'll go away shortly when it's given to the hotel operator.

What professional management CAN do, though, is operate the Center within budget, assuring that the taxpayers stop getting stuck with these little half million dollar annual surprises. And they'll cut the Center's bloated expenses to a reasonable level, and increase revenue, thereby reducing the taxpayer subsidy.

Dick wrote on Jun 15, 2008 12:29 PM:This is a really great venue. All it needs is some good shows.

So long as the best they can offer is The Kngston Trio, plan on losing more money.

Teri wrote on Jun 15, 2008 12:53 PM:Unfortunately, this arts center is one of the best-kept secrets in the area," said Gallo. "Many, many people have no idea it's there."
AFTER 14 YEARS no one knows it is there???? What a weak and lazy excuse.

Jean wrote on Jun 15, 2008 1:10 PM:What is with this guy...”Gallo said the center should also market to the 500,000 people living in southwest Riverside County.” Well, Gallo, have you asked the previous marketing people how many times their requests to do just that were shot down by the very person you insist on keeping in power? Not the lady that keeps feeding you lines, but the real people who work there or have worked there until she decided she needed another scapegoat...she is the problem and has been for the entire time the center has been opened.

Cal wrote on Jun 15, 2008 1:30 PM:Get a few real concerts. Ozfest or Pink Floyd or some good stuff. Forget the high falootin old peoples muze-ack. Bring in some acts that will draw a crowd. Rock n roll will save your soul.

Art Critic wrote on Jun 15, 2008 1:31 PM:Use it for a swap meet

Danielle wrote on Jun 15, 2008 3:37 PM:The Arts Center, to live up to its potential, needs to book more than bands. One of its many main problems really is advertising. Anyone out there who has seen Alvin Ailey, the world's most popular dance company, has said it was really worth the $70. But last time, even my two dance teacher colleagues didn't even know the company was in Escondido! Zero advertising and a small notation on the marqui. As others said, let experienced promoters take it over. How about the people who run the LaJolla Playhouse? And then advertise to those who can afford to pay for the pricey shows. Once the center builds up some revenue, all sorts of shows, with cheaper tickets, will soon follow. The Center tried booking cheaper "local" shows before, but the Center first needs to become a regional magnet before the cheaper shows become profitable.

Todd wrote on Jun 15, 2008 3:53 PM:A library (who reads books anymore?) swap meet, food distribution center, or any other public service would not make the buildings turn a profit and will cost the public even more taxes. Someone's got to keep up the buildings, which costs money. The Center,like a child that turns out to be more expensive than the parents anticipated, cannot be put back in the "womb." It's HERE, period. Deal with it. The only profitable thing we can do now is MAKE it WORK.

Jaque wrote on Jun 15, 2008 4:16 PM:Ah yes, an indoor flea market....!! Can you really imagine a real band like Rick Springfield coming to town? Wow, Escondido would finally be on the map.

Ken wrote on Jun 15, 2008 5:30 PM:A major difference between LJP and CCAE - one has a giving board and one does not. La Jolla Playhouse has a board of members that are an actual fundraising part of the organization...California Center for the Arts, Escondido, does not.

kc wrote on Jun 15, 2008 5:41 PM:Make it work. Its a nice place to go to.The first two years it was open the shows were great. A nice assortment of broadway shows, classical music, operas,ballets, childrens shows, commedians, oldies, concerts. What happened? Get a new booking person. How do these other places do it? Who books the shows everywhere else? Get someone in there to get the job done, and get it done right.It would be a shame if we abandoned that venue.Yeah right, a flea market. Doesn't Escondido already have one?

stevie wrote on Jun 15, 2008 6:42 PM:except in the rare case, the President of the United States only serves 8 years....take the hint council and board

Typical GREED wrote on Jun 15, 2008 7:15 PM:Residents from everywhere else don't want to drive all the way into Escondido (how scary) to see some frivolous shows and at the same time get robbed or their car stolen or have to put up with hoes all over the streets. Why was this dump put in Escondido anyway we will never know. SELL IT or turn it into more holding cells.

Arts Supporter wrote on Jun 15, 2008 8:11 PM:I teach music for a living, consider myself to be VERY supportive of all the arts, and would love to live in an area with a thriving arts community. Even though I live just a few minutes from the Arts Center, I cannot consider that I actually live in an area that is progressive when it comes to having a thriving arts community. I have never been to the Center to see a performance, and there are two main reasons for this. First, I am usually very unaware of upcoming performances. Second, when I do find out about the performances, I find them to be lacking of anything that would interest me.

Too Uptown for the Area... wrote on Jun 15, 2008 8:35 PM:As an former Escondido resident I can say that the Arts Center was a well-intentioned idea that wasn't well-thought out. The Arts center would work well in a more cultured environment such as LaJolla or even Encinitas where the citizens are more interested in the Arts versus shopping or finding a parking spot for their car.

It is probably sad but appropriate that Escondido come to grips with what it is and close the center. Maybe someday when the population matures and stabilizes a bit the city can try again. For now the center is just too uptown for the majority of Escondido residents.

Oh Dear wrote on Jun 15, 2008 8:54 PM:Arts Supporter,
That is both sad and sadly unsurprising ant the same time.

This is the problem right now. We want to support our City, but our leaders are giving us so little to support.

Sybil the Soothsayer wrote on Jun 15, 2008 9:15 PM:It is Ms. Rubesha who does not understand the exercise. As the chair of the arts center, it is her obligation to ensure that it is managed in a fiscally responsible manner. It was she and the current art center president who stood before the city council last summer and said on public record that they would successfully end the season. The result? A towering deficit of more than $600,000. Rather than focus on getting the word out (and if after 14 years people don't know about it, they never will), how about a successful slate of performances? Now there's a novel idea.

Todd wrote on Jun 16, 2008 5:35 AM:As I said before, this "well intentioned idea" cannot be undone without incurring considerable short-term and long-term costs. To stop the money bleed, the ONLY option is to MAKE the Center WORK. Too "upscale" for Escondidoans? OK... but marketers could actually use "upscale-ness" in a a quiet, sleepy, "unsophisticated" town as a marketing DRAW, sort of like the "Grand Ole Oprey" in Nashville. All it takes is someone, anyone, out there with just a bit of imagination, faith, and conviction.

Who said to close it wrote on Jun 16, 2008 6:38 AM:Turn it into a old western style saloon with whiskey and gambling and dancing girls. It would be a big hit with residents and vistors alike.

Turn it into a swap wrote on Jun 16, 2008 6:43 AM:meet, you can have inside and outside booths. And outside we could have people peddling watches and rings while other sell tameles.

Park the Sprinter wrote on Jun 16, 2008 6:45 AM:next to the Arts Center and call it an exhibit, titled, "Things That Have Gone Wrong"

Make it into wrote on Jun 16, 2008 6:47 AM:an expansion of the "F" Street Bookstore. And rent the remaing space to ninety nine cent stores.

CR wrote on Jun 16, 2008 9:41 AM:THe comments on the shows are right on! I rarely have seen anything on the schedule that I would even pay $5 to see. Maybe with such second-rate acts being booked, open up the tickets an hour before the show at $5 until they are sold out. At least some seats would be filled, and more people could afford to go. Even the movie theater across the street is only $10.50!

MC wrote on Jun 17, 2008 12:50 AM:It would make a great casino.

Richard wrote on Jun 17, 2008 1:00 PM:IF the city politicians cannot bring themselves to end the Arts Center subsidy and insist on keeping the center open, they will have to find the money in the rest of the budget. Oddly enough, the city is AWASH in tax revenues, but mismanages their spending.

Escondido has probably the second most generous city worker pension plan in the county (nutty San Diego is first). Indeed, I believe it's the only city beside SD with TWO taxpayer-paid worker pension plans.

City wages are far above private sector salaries. The city's excessive labor costs drain the coffers, and then the politicians blame the budget shortfall on the economy.

Until the politicians (beholden to the city labor unions) get tough with the workers (or better yet, contract damn near everything out), the city will continue to lurch towards a Vallejo-type bankruptcy.

Long Memory wrote on Jun 21, 2008 12:29 PM:During the pre-85 election I don't recall hearing, " based on a misconception that it should make money, when the center has always been envisioned as an economic catalyst for downtown that was unlikely to ever break even." The voters did not vote to have an Arts Center that was unlikely to ever break even!

jerryl wrote on Jun 21, 2008 9:48 PM:This article is full of misleading statements. Contrary to the "lies", we were told the arts ctr would only need city help for a "couple yrs". As I recall the city voted to donate $500,000 per yr for the firs "couple" yrs. Does Kathy Rubesha really live in Escondido? Does Ed Gallo? Does anyone know? We could've turned it into the police station & saved tens of millions, PLUS put $3,000,000 per yr back into fixing streets, paying police/firemen, control grafitti etc & etc. Am I the only one sick of our mayors' VISIONS? When's the election?

jeff wrote on Jul 29, 2008 4:46 PM:I do not live in Escondido. However, I have enjoyed many performances at the Center and have not been deterred by the drive from San Diego if there is a performer, production, or act that interests me. That said, I only learn about these acts through word of mouth from friends in North County. I get many monthly updates from various performing arts sources, which include the Moonlight productions in Vista, as well as other things in Carlsbad, Encinitas, and even Lawrence Welk Village. I have never seen any publicity from San Diego sources for your performing arts center, which is a shame, since I'm sure attendance would pick up if a few million people were not left in the dark! If you are having problems selling performances, why not go through ArtsTix like everyone else? You may not sell your tickets at full price, but you'll have people in your seats.

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