1. Artisphere: A Path Forward for Success Task Force Findings, Business Plan Benefits & Assumptions 1

2. Artisphere: A Path Forward for Success Why was the Task Force convened? Address financial and service concerns Make operational fixes Develop a new business plan OR determine a plan to close the operation. 2

3. Artisphere: A Path Forward for Success What did the Task Force find? Strengths include: Strong support from County government and the Rosslyn BID A Metro-accessible location A unique patron experience Critical acclaim 3

4. Artisphere: A Path Forward for Success What did the Task Force find? Weaknesses include: Limitations of the physical space High operational costs Missing infrastructure A narrow audience focus Unrealistic expectations from the original business plan A lack of consensus on the mission and vision of the Artisphere. A lack of consensus on programming focus 4

5. Artisphere: A Path Forward for Success Why not close? Critical acclaim already established Revenue opportunities existed Original business not the correct measure of success Too early to judge true potential 5

6. Artisphere Business Plan An investment in Arlingtons arts organizations… Artisphere will be an arts and cultural facility which showcases Arlingtons premier arts organizations, bringing activity and vibrancy to Rosslyn. Creating new points of entry for a wide variety of audiences…. In addition to local programming, regionally and nationally known performers, film festivals and family programming will be featured to create new points of entry for a greater variety of Artisphere patrons. With reliable sources of revenue…. The Artisphere will be available for day-time and evening event rentals including corporate training, product launches, social events, fundraisers, and other rental events. Revenue will be earned via rental fees and catering income from these events. 6

7. Plan Assumptions Curtailed hours of operation Resident caterer vs. full-service restaurant No retail shop – for now Reliance on other revenue sources besides ticket sales Robust event rental program Growth of Artisphere Establishment of 501c3 for fundraising, rather than operations 7

8. Plan Benefits An investment in Arlingtons arts organizations. Helps arts organizations grow their audiences A strategic investment in Rosslyn. Encourage nightlife and excitement in Rosslyn A plan that is manageable and can be reasonably accomplished. Proven history of supporting and growing arts organizations Adds another venue to Arlingtons mix of venues Revenues projected from rental income are conservative. More informed decisions about the future of the arts in Arlington Will test the demand for arts and new arts venues in Arlington. 8

9. 9 The Path Ahead: New Business Plan Already Underway Continued development and expansion of rental program with a focus on daytime corporate events. Quarterly meetings for a leading, Arlington-based energy technology company. Corporate event in January for a technology and professional services company based in Rosslyn. Daytime conferences to Artisphere for an online training provider for political marketing.

10. 10 Financial Assumptions Under new business plan: Full year net tax support approximately $1.6 million. Revenue estimates are conservative. Lowers net tax support by more than $1 million annually below current as is state. Hires new Chief Financial Officer for Artisphere.

11. 11 Measuring Success Quarterly Metrics reported to the County Board will include: Financial Budgeted Revenue vs. Actual Expenses Sources of Revenue Facility Rental Income by Month Attendance Average attendance Number of tickets sold Number of visitors to Terrace Gallery Exhibitions Other Social media Critical reviews Demographics

12. 12 The Path Ahead: New Business Plan Already Underway Artisphere presented Notasphere in January 2012a month of programming created by local artistic collaborators. Artispheres resident companies, and Arlington supported arts groups, WSC Avant Bard and the National Chamber Ensemble will continue to perform. Arlington sister city partnership with Coyoacán, Mexico will present Frida Kahlo: Her Photos in February and March. Realignment of Artisphere and the Cultural Affairs Department with Arlington Economic Development.