The city of Winston-Salem's agreement to reduce the amount of money that the local arts council pays the city to occupy the ACDelco Building to $1 over the next eight years could cause headaches for the city -- and the arts council -- down the road, one city council member said.
"We need to continue to try and be a partner with the various groups, but at the same time, we need to make sure we're being good stewards of the money," said Wanda Merschel, the city-council member for the Northwest Ward.
The Arts Council of Winston-Salem and Forsyth County needs to raise $1 million from local governments in order to qualify for a $1.2 million grant from the Kresge Foundation. The Kresge Foundation makes "top-off" grants that allow organizations to get the last bit of money needed toward their fundraising goals.
The reduction of the arts council's payment to the city from $53,000 to $1 a year for eight years would represent $400,000 in city money that could be applied toward the Kresge Foundation requirements.
The arts council is raising money for its renovation of the historic Sawtooth Building into the Downtown Center for the Arts, including the Hanesbrands Theatre. The arts council has raised $22.7 million toward a goal of $26 million for its capital campaign.
The city council voted unanimously on Monday night to reduce the arts council's payments, but it's not clear how the city will make up the lost revenue, Merschel said.
The city usually gives the arts council $200,000 a year in operating money, Merschel said, and it might need to cut that support to $150,000 in order to make up the money.
The city has also accepted different economic-stimulus packages that can require various types of matching funds, she said, and it's hard to know how that will play out.
The foundation has deferred a vote on the arts council's application three times to allow the council to pursue commitments from government sources.
The arts council has asked the Forsyth County commissioners for $200,000. The commissioners will hold a public hearing on the request Monday. They have said that they are inclined to support the request.
Other government money, including some from the N.C. Department of Transportation, would make up the difference needed to get the $1 million.
Richard Emmett, the chief operating officer of the arts council, said that the group understands the pressures that the city is facing, but that qualifying for the grant would bring economic development to downtown.
He is thankful for the money, he said, even if it comes at the cost of the city's contribution to the arts council's annual operating budget.
"We'll just have to work harder," he said.
About 400 people will be in the Downtown Center for the Arts on a daily basis to work, and to attend classes, conferences and performances.
"We feel that we're working hard to prove our worth to the community," Emmett said.
mgiunca@wsjournal.com
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