City Council will vote at its upcoming April 13, 2020 e-meeting on whether or not to float the Dr. Phillips Center for the Performing Arts during its pandemic-caused closure.
A motion is in play to use funds from the Dr. Phillips Center for the Performing Arts Maintenance, Repair, and Replacement Account to pay building expenses during the coronavirus/COVID-19 pandemic to the tune of up to $250,000 per month.
That number, if approved, has a suggested maximum of 10 months, not to exceed $2,500,000, from the DPC MR&R Account to be used for routine operating costs of the DPC building.
The City of Orlando currently contributes $1.5 million a year into a special account meant to support routine maintenance and repair of its newly-opened performing arts center. Currently, there is a cap of up to $500,000 a year that can be used, with the remaining expenses related to operating and maintaining the building being the responsibility of the Dr. Phillips Center for the Performing Arts, Inc.
The balance of the funds in the MR&R Account are to be used for long term capital maintenance and repair for larger capital items like the HVAC system and the roof. The current balance of funds in the MR&R Account reserved for future long term capital repairs is approximately $6,230,000 and is held by DPCPA Inc.’s trustee bank.
According to a report associated with the motion, as a result of the necessary closure of the DPC resulting from operating restrictions related to the global coronavirus pandemic, … “DPCPA Inc. has or is anticipated to incur significant lost operating revenue and is expected to be unable to pay for the costs of routine building maintenance expenses, including utilities, insurance, labor costs for building maintenance and security staff, and other routine expenses related to the maintenance and protection of the DPC building. DPCPA Inc. has adjusted various factors within its control to reduce the monthly expenses of the building by approximately 34 percent, including adjusting thermostat settings and significantly reducing supplies, maintenance, security and landscaping costs. DPCPA Inc. estimates and City staff have confirmed, that the reduced building expenses will total approximately $250,000 per month for the period of time that DPCPA Inc. revenues are affected by the coronavirus restrictions.”
The funds are already in the aforementioned account and no other funding will be needed from City Hall if this motion is passed.
