MICA’s operating plan is a three-year projection of its operations and resulting financial performance. MICA’s preliminary operating plan projects steady state annual operating revenue of $543,000, contributed revenue (fundraising) of $323,000 and expenses of $866,000. The plan incorporates input from its resident user groups. The key to sustainability of MICA’s plan is diversified sources of revenue - performance space and rehearsal rentals; classes and proceeds from the box office.
MICA researched, developed and refined its operating plan from April 2014 to December 2015 in consultation with AMS Planning & Research, a global arts and entertainment industry consulting firm with over 25 years’ experience working with hundreds of arts organizations. AMS’ clients have included Lincoln Center for the Performing Arts in New York, the Sydney Opera House and the Seattle Symphony as well as numerous community performing arts centers nationwide.
Plan highlights include:
Robust usage of 241 total use days (rehearsals, performances and rentals) per performance space
Over 2,400 class sessions in the studios, theatre lab and classrooms
Over 1,500 classes/lessons in four practice rooms
Diversified revenue: 47% from performance space and rehearsal rentals; 40% from classes and 13% from ticketing.
Future MICA user groups consulted for the plan include Youth Theatre Northwest, Children’s Dance Conservatory/Island Youth Ballet, Mercer Island Visual Arts League, Music Works Northwest, Musical Mind Studio, and Russian Chamber Music Foundation. Projected support for usage by the Farmers Market and the City were also included.
For conservatism, the model does not include any income from the planned café or from any programs produced by MICA directly on an “at-risk” basis.
“The MICA operating pro forma is based on detailed research in the local arts and cultural sector, data from our nationwide performing arts benchmarking program PACStats and extensive conversations with MICA leadership and local user groups,” said Katie Oman, Director of AMS. “It is informed by industry best practices including conservative attendance estimates and an annual contribution to a 30-year building maintenance reserve fund. Based on the projected activity and normal industry operations, the contributed income level falls well within the expected range for community arts venues, as well as the expected parameters of a vital and productive operation.”
Click here for the full opinion letter from AMS summarizing the operating plan.