Council gives theater grant

City officials dipped into the Arts Commission funds Dec. 9 to award the Laguna Playhouse a $15,000 anniversary present.

The council voted unanimously to grant the allocation rather than reduce the lease payment to $1 as requested by Playhouse management in recognition of the theater’s upcoming 90th anniversary, economic uncertainty and the theater officials’ desire to make time for other performing arts organizations. The one-year grant was proposed by City Manager Ken Frank.

“Not everybody will be happy with this solution,” Frank said.

Normally, the commission recommends expenditures from its budget, which are then submitted to the council for approval.

Under his proposal, funds would be granted to the playhouse, but would leave in place the obligation to make the lease payment, and other payments associated with its facility.

The Playhouse pays $9,900 for its lease; $3,100 in taxes; and $1,800 in sewer fees annually, for a total annual cost of $14,800, according to Gavin Curran, finance director for Laguna Beach.

Mayor Pro Tem Elizabeth Pearson and Councilwoman Toni Iseman volunteered to serve on a council sub-committee to work with the playhouse officials to free up time for other performing groups to use the theater.

“How often have we heard that we need more performance space?” asked Pearson, who would have supported a dollar-a-year rent.

Playhouse Managing Director Karen Wood asked the council for the reduction during discussion of the mid-year budget report.

“The economy has caused financial concerns for all nonprofit arts organizations, including the Playhouse,” Wood said.

“We were on target at the end of the first quarter, but there are so many unknowns and ramifications by the impact of the downturn.”

The playhouse is taking the unknowns into consideration as next year’s budget and season are being considered.

“Certainly, we will do one less play, which will create a more sustainable budget,” Wood said.

Wood was hired full-time in February, after almost a year’s search for a replacement for Richard Stein. Stein led the Playhouse from an amateur to professional status and expanded its season, virtually excluding the use of the theater by other local groups, such as No Square Theatre and Ballet Pacifica.

“By the time I came, the board was ready to reassess the theater’s position in the community,” Wood said. “We expanded our mission statement from one sentence to one page, which includes a vision for the future and values.”

The complete statement is posted on www.lagunaplayhouse.com.

Councilwoman Jane Egly said a rent reduction would send a poor message in these tough economic times, when the council had just been advised by the city manager that revenues are down.

Frank had previously conferred with Wood and suggested she look at the Business Improvement District funds.

“I did not consider a change in the lease,” Frank said. “If we reduced the rent, it could go on for years.”

The BID is funded by a percentage of the bed taxes, approved by the hotel operators in Laguna and renewed on an annual basis. The money is to be used to fund art-related activities and organizations that attract tourists to Laguna. A large chunk goes to the Arts Commission, which recommends how it is to be used.

Frank said the commission has a carryover of $350,000 from previous years’ funding.

Wood said reducing the number of plays the theater produces would allow time for other groups to rent the theater. She proposed a grant pool to help the other groups pay for their use of the theater.

The grant will fund this year’s request by the playhouse, Frank said, and give the sub-committee time to study long-term policies.

BARBARA DIAMOND can be reached at (949) 494-4321 or [email protected].