A report commissioned by the fundraising organization of the Overture Center for the Arts has noted a variety of increases in values and revenues across the city since the time of the launching of the Overture project.
Besides the $1.9 billion increase in aggregate property value in the downtown area between 1998 and 2008, the 201 State Foundation study notes more than $12.3 million has been brought in through ticket sales to Overture audiences.
The study, carried out by AMS Planning and Research, details the various economic benefits provided by the arts center. The report notes various changes seen across a range of factors from condominium purchases to property taxes paid, noting in most cases the changes seen from 1998 to 2008.
“The folks that did the study have a real wealth of experience,” Overture spokesperson Robert Chappell said. “We have absolute confidence in their findings.”
Chappell added the real benefits of the Overture Center are tangible, though very hard to measure in a traditional sense.
He cited the center’s Kids in the Rotunda program that showcases performances targeted toward children and families, and providing a space for community members to become greater consumers and appreciators of the arts.
“I think the study showed two things: [The] Overture is important to our economy. It’s an important economic engine, particularly to the downtown area,” said Janet Piraino, chief of staff to Mayor Dave Cieslewicz. “It’s also important to the community in the entertainment and service it provides.”
According to the report, property taxes generated within a four-square-block radius of the Overture Center were $5.2 million higher in 2008 than in 2003.
The report’s executive summary details the effect the Overture and its affiliated resident companies have on visitors and audiences.
It states that 1,471 full-time equivalent jobs are supported by its operation, $26.39 million is generated in household income to local residents and $4.47 million in revenue is returned annually to local and state governments.
The center has experienced financial difficulties in recent years due to the liquidation of a trust fund in 2008. This funding, established to address construction debts and create a revenue stream for the Overture, was lost in 2008 following nationwide economic hardship.
Fears were raised at the time that Madison taxpayers would have to contribute to what is, according to Piraino, a nearly $27 million debt.
Piraino said the financing structure was very complicated, but Cieslewicz feels strongly that taxpayers are by no means to be held responsible for the Overture debt.
The Overture is doing what it can to address the debt issue, Chappell said, adding the responsibility is that of the Overture and the Overture alone.
“There’s a very specific series of firewalls put in place just in case this happened, payments to the debt continue to be made and we are in a hurry to work out an arrangement with the banks,” Chappell said. “We have taken the lead in seeking out an active solution.”
