Intermedia Arts, the Minneapolis venue that has built a reputation as home to innovative community-based video, music, dance and literature during its 35 years, is on the brink.

Faced with a $100,000 shortfall on its $1 million budget, Intermedia is cutting programming, closing its two art galleries and making five of its six full-time employees part-time, the company announced Monday.

The company is also making itself available for rentals to others beyond its small- and midsized arts partners. It will now host corporate events, receptions and weddings.

"We have to make some drastic changes in this environment," said executive director Theresa Sweetland. "We have to do this now so that we will be around to continue our work."

The changes, which take effect in mid-January, were precipitated by denial of grants that the organization had received in the past.

"We've heard from some that they've had less money to give out and three times the amount of applicants," said Sweetland. "It's a very, very difficult year."

Begun in 1973 as University Community Video, Intermedia expanded into music, dance, performing arts and literature. It bought the Bee-Line Automotive Building at 2822 Lyndale Av. S. in 1994. It has a 120-seat theater as well as classrooms.

Intermedia's best-known activities include "B-Girl-Be," an annual festival focused on women in hip-hop, and "55408," a neighborhood art show. Both have been put on hiatus. The multi-disciplinary art center has invited about 200 small- and medium-size arts organizations to a meeting Friday to ponder ways to collaborate.

The cuts, which threaten to redefine Intermedia, come as the organization recently completed a strategic five-year plan to increase its earned income and become less reliant on grants.

"We're just speeding up our revisioning," said Sweetland. "There were changes that we needed to make before the financial crisis hit. It's an opportunity -- to show the community the reality of what we do, and to invite them it. But it's a very scary one."

Rohan Preston • 612-673-4390