UPAC ALMOST BACK
Renovations almost done; subsidiary of investor TD Bank is now 99% owner for at least 5 years
A multimilliondollar renovation of the Ulster Performing Arts Center in Midtown Kingston is nearing completion, funded in large part with an investment by TD Bank.
The bank made a $2.2 million investment in the $5.2 million project under a deal that was completed in August, according to Chris Silva, executive director of UPAC parent company Bardavon 1869 Opera House Inc. A subsidiary of the bank, in turn, will become 99 percent owner of UPAC and be able to access historic tax credits for five years by
way of the Federal Historic Preservation Tax Incentives program, Silva sad.
After the five years, TD Bank will have the option of returning ownership to the Bardavon, he said.
Other funding for the UPAC renovation has come from the Bardavon, the state, the Dyson Foundation, Central Hudson Gas & Electric Corp., corporate gifts and individual donors, Silva said.
He said the renovations, expected to be completed before Thanksgiving, will solve many long-standing problems at the theater.
“When complete, it will ensure that rain will no longer drip on Yo-Yo Ma’s head, the lights won’t go out on Natalie Merchant in the middle of her concert, and the heat won’t fail as 1,500 kids sit down for ‘The Nutcracker,’” Silva said in an email. “Plus, the theater will be open all year-round, bringing at least 10,000 more people into Midtown Kingston each year.”
Phyllis Reich, vice president of Community Capital Group at TD Bank, called the UPAC work “a very important project”
“[It] will allow the residents of the community to enjoy performances and nearby restaurants and businesses surrounding the theater,” Reich said in an email. “The building is designed to improve the area, which aligns with our commitments of giving back to the community.”
A prepared statement from the Bardavon said the work “will secure UPAC’s historic structure for present and future audiences, allow the theater to be open for a longer annual performance season, and strengthen its role as a major Ulster County and city of Kingston cultural and economic anchor.”
The renovation of UPAC, at 601 Broadway, began in May. It has included the replacement of the heating and air conditioning system, a significant expansion of rest rooms, roof drainage and electrical work, and brick and mortar restoration, Silva said.
The Federal Historic Preservation Tax Incentives program was formed to “encourage private-sector investment in the rehabilitation and reuse of historic buildings,” according to the U.S. Department of the Interior’s website.
Silva said previous that “in order to make the deal as attractive as possible to the potential for-profit [investor], we need to show annual positive net income over the compliance period. If we had to pay taxes [as a not-for-profit operation], that would be impossible to do.”
In the past, Silva has said the UPAC renovations would:
• Help preserve the theater, which is recognized as the main anchor of the Midtown Kingston arts district.
• Enable the theater to remain open through the summer months, “drawing thousands more visitors to the neighborhood and its businesses during a period that has been traditionally quiet, with very few cultural tourists.”
• More than triple public rest room facilities, which at present are “woefully deficient.”
• Increase public safety in the theater by way of upgrading alarm systems and emergency lighting.
• Increase city and county sales tax revenues from local businesses and concession sales.
• Create about 100 shortterm construction jobs.
Silva said the project has incurred about $200,000 in “unbudgeted change orders, mostly due to more-than-anticipated asbestos removal.”
Also, he said, “legal, accounting and consultant fees for the tax credit process have ... exceeded budget by $150,000. So there is a $350,000 shortfall .... ”
To make up that amount, the Bardavon has received a $100,000 challenge match from an anonymous donor and has gone to the board of directors, funding sources and the public with the theater’s “Name a Seat” campaign. For a tax-deductible gift of $500, donors get an inscription on a theater seat at either UPAC or the Bardavon.
“These permanent inscriptions can be in the donor’s own name or in that of a business, family member or other individual,” Silva said. “The ‘Name a Seat’ revenue the public could generate has the potential to dramatically reduce the project shortfall and help lift this cash-flow burden.”
To donate to the seat campaign, contact Silva at csilva@ bardavon.org or (845) 4735288, ext. 101.