Changes afoot at troubled Burnsville arts center

Even supporters of one of the costliest and most daring ventures a Twin Cities suburb has ever undertaken are starting to admit it isn't working out very well.

After a first year that saw the publicly funded Burnsville Performing Arts Center lose more than half a million dollars, the city is trying to prevent a repeat performance in 2010.

Ten years in the making, the $20 million facility, plush enough to surprise many first-time visitors, is the centerpiece of Burnsville's urban village, Heart of the City. The project was made possible by heavy public investment from the Metropolitan Council as a showcase for others to follow.

But controversy has been a constant companion. Opponents questioned the use of public funds when other pressing needs exist.

The City Council and city staff have preached patience on the center's finances from the start. But they didn't count on a deep recession turning an expected shortfall into an alarming sum.

Now, Council Member Charlie Crichton is calling for the center to "stand on its own." To that end, the council will consider, among numerous options, restructuring it legally as a for-profit operation. That would mean changing it from a rental facility to one that produces its own shows.

Meanwhile, the clock is ticking. January numbers show the center started the year $50,777 in the hole.

One sign of a shakeup: The council is forming a citizen advisory board. It will be composed of seven members of the community with various skills and backgrounds, as well as two nonvoting members from organizations already doing business with the center.

City Manager Craig Ebeling said he thinks that the addition of such a group will allow the city to be more engaged on the economic side.

The 2009 operating loss was $533,599 -- $113,000 more than anticipated. While expenses were accurately projected, the center's projected revenues fell short by $112,112 (projected: $578,098; actual: $465,986). Tammy Omdal, Burnsville's chief financial officer, said revenues fell within 80 percent of projections, which normally is deemed acceptable.

The biggest discrepancy came in the category of merchandise. Sales were projected at $33,900 but came in at $2,692. According to Tammy Koolbeck, vice president of venue services for VenuWorks, the 2009 figure was based on gross sales; the 2010 projection is based on net commissions.

Koolbeck acknowledged, however, the PAC did not sell as much merchandise as expected. "Industry-wide, there have been significant decreases in ticket sales, merchandise sales and food and beverage due to the economic downturn," Koolbeck said.

Some have hinted that the city is not sure it's getting its money's worth.

Council Member Dan Gustafson, who serves on the board of the Chameleon Theatre Circle, which puts on plays at the center's 150-seat Black Box Theatre, echoed the words of Council Member Mary Sherry, who said the center's staff has not done a good job of relating to the community. Gustafson also said there are internal concerns as well.

"I have been over to that building a lot," Gustafson said, "and a lot of people are not happy with the way things have gone."

Mayor Elizabeth Kautz said an advisory board will be better able to determine whether VenuWorks is running a successful business. Crichton's response: It's already obvious they are not.

Dean Spiros • 952-882-9203