To: Nags Head Board of Commissioners

MEMO

From: Bob Muller, Don Bryan and the Board of Directors of Eure Outer Banks Arts Center Inc.

Re: Joint Restricted Fund Grant Application

Date: September 12, 2007

On Sept. 5th we asked you to join us in applying for a grant to assist in the purchase of Glenn Eure's Ghost Fleet Gallery and its conversion from a private art gallery to a public arts center. We appreciate your consideration of our request.

The Objective of the Eure Outer Banks Arts Center (EOBAC) lays out our goal to:

Establish a public space to promote the arts on the Outer Banks and increase the involvement of the arts in our economy and our community.

In a healthy community art is an integral part of public and private life. The EOBAC promotes art as a part of life in our community by presenting art projects, educating us about the arts and educating and encouraging artists. The EOBAC also promotes the arts as an important component of our tourism based economy. The space is a vehicle for programs and projects but projects and programs need not be limited to the space.. EOBAC is not just a building it is an idea and an organization.

Discussions about acquiring the gallery and ensuring its continuing operation began two years ago when Freddie Hutchins, now the President of EOBAC, approached Nags Head Mayor Bob Muller with a proposal: ”Why doesn't the Town buy the gallery and operate it as an arts center?” Over lunch we discussed other possibilities and agreed to talk about the gallery in the future, when it appeared that it might not be able to continue operations.

Pres. Hutchins had similar discussions with others in the community including former Mayor Don Bryan, former arts committee chair Majid Elbers and arts committee member Didi Tupper. All agreed the idea was compelling but the moment was not right.

Beginning this spring the group began meeting to discuss the future of the gallery. Personal challenges for Glenn and Pat Eure had developed to the point where it was not clear what the future of the gallery would be. It was time for action.

We have now incorporated as the Eure Outer Banks Arts Center, a non profit corporation, formed to own and operate an arts center on the Outer Banks. We plan to purchase the Ghost Fleet Gallery at 201 E. Driftwood Street.

To detail our programming and financial goals and to explain the rationale for the Town and the Visitors Bureau's involvement we have prepared a draft grant application. It develops the themes that we believe make the Town's partnership with the EOBAC such a natural pairing and it details the direct benefits that our community and our tourism based economy can derive from our partnership.

We hope this provides a sufficient overview of our proposal. In the event there are additional questions members of our Board of Directors will be present at the meeting to provide information and answers about our plans and our proposed partnership.

We appreciate your consideration and all the time and energy that you devote to our community. We look forward to contributing to that community in a meaningful way.

DARE COUNTY TOURISM BOARD

RESTRICTED FUND PROJECT APPLICATION

Name and title of person making application:M. Renée Cahoon, Mayor of Nags Head and Freddie Hutchins, President, Eure Outer Banks Arts Center Inc.

Local Government name:Town of Nags Head

Non Profit entity name: Eure Outer Banks Arts Center Inc. (EOBAC)

If non-profit entity, you must enclose a copy of the written confirmation issued by the U.S. Internal Revenue Service conferring non-profit status under Section 501 of the U.S. Internal Revenue Code.

Principal place of business: 210 E. Driftwood St., Nags Head NC 27959

Address: C/o Hutchins Allen , 4720 N. Croatan Hwy. Kitty Hawk, NC 27949

Phone number: 252-261-1040

1. Project Name and Location: Eure Outer Banks Arts Center, 210 E. Driftwood St., Nags Head NC 27959

2. Project goals and objectives: To purchase and operated Glen Eure's Ghost Fleet Gallery as a public art gallery and arts center.

3. Explain how proposed project meets the short/long term master plan for the applying community/municipality (attach recent master plan approved by governing body). See Attachment #1

4. Project timetable (starting date and duration):We expect to complete the purchase of the gallery and the transition to operation by the EOBAC by the end of FY 08-09. Fund raising for the EOBAC will begin in the fall of FY 07-08.

5.Project justification as relates to impact of tourism in Dare County: Glen Eure's Ghost Fleet Gallery plays a significant role in arts tourism on the Outer Banks. It has hosted major art shows every year and draws arts visitors to the area. Through its shows and gallery sales it supports the local arts community and helps other local artists and galleries survive. If the gallery closes this impact will be lost. When we complete the transition from commercial gallery to public arts center the current impact of the gallery will be maintained and we will be in a position to expand the role of the gallery in cultural tourism(see Attachment #2 Objective and Potential Programs).

The EOBAC will serve as another cog in promoting cultural tourism on the Outer Banks. Cultural tourism is an important component of the local and state tourist economy. Visitors who travel for cultural events and attractions travel more frequently and spend more money than the average state visitor. The North Carolina Arts Council recently released a study of the role and impact of cultural tourism in the state. A summary of the findings is attached (Attachment #3)

The partnership of the EOBAC with the Town of Nags Head and the Outer Banks Visitors Bureau is well suited to expand the role and increase the economic impact of cultural tourism in our area.

6. Financial information (project total, and other sources of funding for this project). Architectural and engineering costs are not applicable.

Estimated cost of Purchase: $550,000

Revenue Sources

OBVB Grant:$200,000

Private donations and grants $350,000

The EOBAC will undertake a major capital fund raising drive beginning in fall of 2007 (FY 07-08) to raise the needed funds to purchase the building and begin operations. We estimate annual operating costs will be in the range of $74,100. We have attached operating budget estimate (Attachment #4). This money will be raised from public and private sources. The requested grant is solely for the purchase of the gallery. In the future the EOBAC expects to apply for TAG and Special Project Grants from the Visitors Bureau to help provide specific tourism related cultural programming.

The EOBAC is solely responsible for raising the matching funds. The Town's participation in this grant application is to demonstrate its strong support for the project. The Town views the EOBAC as a new non profit partner in building our community. Both organizations expect that partnership to flourish over time.

7. Other information that may be helpful in considering the project (attach additional material as appropriate).

DATE ______

SIGNATURE______

M. Renée Cahoon, Mayor of Nags Head

______

Freddie Hutchins, President Eure Outer Banks Arts Center Inc.

Attachment #1

# 3. Explain how proposed project meets the short/long term master plan for the applying community/municipality (attach recent master plan approved by governing body). The Town of Nags Head's Vision statement says in part:

'The Town of Nags Head is working to build a community with an economy based on family vacation tourism.... Important elements in developing and maintaining this economy are:

...

Recreational amenities and attractions, both commercial and non-commercial thatare wholesome and appeal to a broad spectrum of family members, age groups and interests.

Through the purchase and operation of the Eure Outer Banks Arts Center (EOBAC) the applicants will maintain and expand the diversity of tourist attractions on the Outer Banks. The existing Ghost Fleet Gallery is a major arts destination. The gallery currently hosts several major art shows each year as well as poetry readings and other arts events. The Gallery was the home of the Icarus Arts Show, hosted the Dare County Arts Council's Frank Stick Memorial Outer Banks Art Show and shows for the Dare County school system for many years.

Age, health and financial challenges have combined to make it hard for the current owners to continue to operate the gallery. The goal of the Town and EOBAC is to maintain and even increase arts activity at the gallery thereby expanding the base of our family tourism economy.

The gallery is not solely a tourism asset. It's programs play a major role in the local arts scene as well. The Town's Vision Statement provides “ that the town must be a good place to live before it can be a good place to visit.” The EOBAC will play an important role in making Nags Head and the entire Outer Banks a good place to live by maintaining and expanding the cultural programming currently provided by the Ghost Fleet Gallery.

The EOBAC plans to provide a variety of programs including increased shows by local and visiting artists, arts education programs for all ages as well as programs to promote arts tourism at local and regional arts centers and galleries. We also hope to provide marketing and business training for local artists.

For a more comprehensive inventory of the programming possibilities see the attached Objective and Potential Programs document.(Attachment #2)

Attachment #2

Eure Outer Banks Art Center Inc.

Objective and Potential Programs & Partners

Objective:

Establish a public space to promote the arts on the Outer Banks and increase the involvement of the arts in our economy and our community.

Potential Program areas include:

Exhibits of local artists
Frank Stick Show and other group shows
Exhibits by individuals and small groups
Exhibits readings and performances by Dare County students
Readings and performances by local writers, poets, performance artists and musicians
Establish a permanent collection of museum quality local art (possibly use the Town of Nags Head collection as a core or seed collection)
Exhibits of art from other areas
Traveling museum style exhibits
Exhibits by artists with contrasting or complementing visions of the Outer Banks (i.e. urban or other beach oriented communities
Education programs about the arts and art appreciation
Encourage school groups to use the facility for programs
Encourage art in the schools
Provide general training in art appreciation
Promote the cultural history of the Outer Banks
Architecture
Crafts
Education and instructional programs for artists
Art classes
Economic training (marketing, the business of art etc)
Programs for visiting artists and the public (Art camp with YMCA, on your vacation take a day or two of water color classes etc)
Partnership with COA Crafts BA program
Promote the local art as an adjunct of Outer Banks tourism
Group gallery tours w/guide
Better promote art shows and exhibits in coordination with the OB Visitors Bureau
Inventory, map and promote the Outer Banks cultural resources.

Attachment #3

Economic Impact of Cultural Tourism

In recent years, North Carolina has consecutively been named one of the top 10 states for cultural tourism. A study funded by the North Carolina Arts Council, "The Artful Traveler: Cultural Tourism in the State of North Carolina," provides a thorough overview of the impact of travelers' dollars within the state.

The study shows how cultural events and hands-on activities are what fuel people to spend money in North Carolina. The emergence of u-pick farms, outdoor theatre, festivals and museums have helped to attain travelers’ interests and has led to a surge of job opportunities to North Carolinians.

North Carolina's cultural travelers spend $102.28 per person per day, which far exceeds the national average of dollars spent per day per traveler.

Compared to all travelers, those who participate in cultural events pump more money into an area's economy.

Cultural tourism remains the fastest growth segment of the industry.

81% of all travelers stop at a museum, take in a concert, or find other ways to enjoy the arts. On average they schedule 5 cultural activities per trip.

In 2004, North Carolina was named 8th, among all states, in cultural and heritage tourism by the Travel Industry of America.

"Tourists want to learn something new and hope to enrich their lives through the cultural travel experiences."

In North Carolina, nearly half of cultural tourists (48%) say that destination choice is influenced by activity.

Nearly 75% of people who received material about summer performing arts in North Carolina traveled exclusively for the arts event.

Heritage and cultural tourism may be as large as "40% of the leisure/tourism sector."

"Hands-on experiences" are key traveler motivators, such as arts weekends, music and dance venues, and craft retreats.

Cultural/heritage travelers are much more likely to use the Internet than other travelers.

In 2004, domestic travelers spent $13.3 billion across the state.

From North Carolina Arts Council web site.

Attachment #4

Estimated Operating Budget

Revenues

Commissions From Exhibits * / $ 10,000
Rental Of Space For Community Events / $ 2,550
Rental Of Apartment * / $ 5,000
Annual "Friends" Contributions / $ 22,000
Annual Local Gov't And Non Profit Funds / $ 25,000
Endowment Earnings Contributions / $ 9,550
Other

Total Revenues

/ $ 74,100
Costs And Expenses
Wages / $ 24,500
Payroll Taxes / $ 7,000
Advertising & Publicity * / $ 4,000
Auto / $ 2,500
Cleaning And Maintenance / $ 5,000
Insurance * / $ 5,000
Legal & Accounting / $ 2,500
Repairs * / $ 6,000
Office Supplies * / $ 3,500
Property Taxes * / $ 2,000
Utilities * / $ 7,500
Bank Charges (Including Credit Card) * / $ 1,200
Licenses & Franchise Taxes * / $ 100
Dues & Subscriptions * / $ 800
General & Miscellaneous / $ 2,500

Total Costs And Expenses

/ $ 74,100

* based upon historical data

To: Nags Head Board of Commissioners

Potential Program areas include:

Potential Partners include:

Attachment #3

Economic Impact of Cultural Tourism

Attachment #4

Estimated Operating Budget

Revenues

Total Revenues

Total Costs And Expenses