Preliminary Feasibility Report

Olympia, Washington

Prepared for

The City and Community of Olympia

October 2009 ARTSPACE PROJECTS, INC.

250 Third Avenue N., Suite 500 Minneapolis, MN 55401

612.333.9012 www.artspace.org

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Introduction

ocated 75 minutes south of Seattle on Interstate 5, Olympia is the capital of Washington and the seat of Thurston County. Although it is perhaps best known as a government center, we discovered it to be a dynamic place for the arts as well. A community of

45,000 residents, Olympia is part of a larger geographic area that includes more than 200,000 residents in the four square miles surrounding the city. Olympia is often associated with Tumwater and Lacey, smaller neighboring communities that are part of the same metropolitan area. Olympia is one of the oldest cities in Washington and was a major transportation hub in the 1800s. Olympians are very proud of their recent designation as Number Six in the list of Best American Cities in a Kiplinger report. Kiplinger noted: “Olympia is a cultural diamond in the rough of the Pacific Northwest. Mischaracterized sometimes as a sleepy government town, Washington’s state

capital . . . enjoys a thriving visual and performing arts scene.” Many art forms permeate the Olympia arts scene. We observed and experienced evidence of a thriving theater scene, a dance school, several visual arts studios, and other nonprofit cultural organizations. One of the area’s most notable arts festivals, Art Walk, takes place twice a year, in April and October, and transforms downtown Olympia into an art gallery and performance space. Art Walk, which highlights many art forms, was established in 1990; today it draws more than 30,000 attendees during the spring event,

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which includes the Olympia Procession of the Species, produced by Earthbound Productions.

It is important to note that Artspace has a growing body of work in the Pacific Northwest – two projects completed in Seattle and one under construction in Everett. All told, these projects represent 150 units of live/work artist housing and more than 60,000 square feet of commercial space for creative businesses and nonprofit arts organizations. As a result of this concentration of work, Artspace staff members are familiar with the area; indeed, our Regional Director, who has overseen much of our work on the west coast, is a Seattle resident. This body of work and the overwhelmingly positive response to a potential Artspace project from all sectors helped set the stage for the feasibility visit.

With financial assistance from City of Olympia, Artspace was invited to conduct a Preliminary Feasibility Visit to begin the process that could lead to a mixed-use (live/work plus nonresidential creative and commercial) project in Olympia. The visit took place September 16-17, 2009; Artspace was represented by Cathryn Vandenbrink, Regional Director; Wendy Holmes, Vice President for Consulting and Resource Development; and Teri Deaver, Director of Consulting and New Projects.

Downtown Olympia and Mount Rainier

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Special thanks go to the ad hoc committee of the Olympia Arts Commission and other members of the core group, which organized the Artspace visit to Olympia, and to the many artists and community members, many of whom attended one or more meetings, opened their studios and other spaces to us, and testified to the need and desire for live/work, working studio, and arts center spaces in Olympia.

Famous Artesian Well, Downtown Olympia

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Findings

uring a Preliminary Feasibility Visit, Artspace gathers information in five main areas: project concept, artist market, site feasibility, financial feasibility, and local leadership. While these are not the only factors we consider in making our recommendations, they

help us frame the discussion. If the community is clear about what it wants – that is, if the project concept has been determined – we evaluate that concept in the context of the other factors. For example, if the concept involves adapting a particular historic building for use as an artist live/work project, we consider whether the building in question is structurally sound, suitable for the intended use, available at a price we can afford, and so on. If the project concept hasn’t been determined, we weigh the variables and offer recommendations to help the community decide how to proceed. PROJECT CONCEPT

Many communities have a clear project concept in mind before they contact Artspace. Buffalo, New York, for example, was interested in a live/work project to catalyze development in an economically challenged neighborhood. Seattle, Washington wanted to find long-term and affordable spaces for local artists who had been displaced (particularly in Pioneer Square) by the dot.com boom and later by the 2001 earthquake. For Santa Cruz, California, where real estate values are among the highest in the country, the goal was to keep artists from being priced out of the community (which generations of artists had already experienced). In Olympia, the project concept could include a combination of live/work spaces with complementary commercial spaces for artist studios, artist businesses, nonprofit arts organizations, microenterprises, etc. Community leaders with whom we spoke used phrases like “economic engine,” “cottage industries,” and “downtown destination” to describe how a project like this could be beneficial to Olympia. Everyone we met, however, appeared convinced of the value of an affordable live/work or mixed-use project for artists and open to where it might be located and how it might happen. This was evident from our tours of buildings and sites that were regarded as possible candidates for an Artspace project. Over the course of two days, we evaluated a number of suitable sites. Another common “concept” theme was that of an arts center. Many Olympia leaders talked enthusiastically about creating a multi-use/multi-disciplinary arts center in the context of a live/work project. The Artspace project in Everett was referenced many times because of its unique collaboration between an arts council and Artspace. The need for a community arts center was discussed in some groups. This could comprise the commercial portion of an artist housing project. Right out of the gate, leaders were talking about multiple Artspace projects, about green architecture and sustainability, and about connections to Olympia’s Transit Center.

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Because we have worked in the area, have an office in Seattle, and understand the state funding opportunities for projects of this type, we view Olympia as a development opportunity where many doors are already open to a variety of possibilities. In addition to affordable live/work units for artists and their families, an Olympia project might also incorporate rental studio space, administrative space for arts and cultural organizations, and/or space for small local businesses. Depending on the location, of course, more or less commercial space may be warranted. ARTIST MARKET

An in-depth Artist Market Survey is a necessary step in the early predevelopment phase of an Artspace live/work project. We use the survey to determine both the size and the nature of the

market for the project. It tells us with reasonable accuracy how many live/work units the local arts community can fill, what neighborhoods are of greatest interest to the artists, and whether there are special considerations, such as the need for specific kinds of studio space, that might influence the design and scale of the project. We recommend proceeding with an Artist Market Survey if, based on our Preliminary Feasibility Visit, we are confident that the survey will

indicate the existence of a market sufficient to support a project of at least 30 and preferably 35 to 40 units. Developing the questionnaire, publicizing it (we typically attempt to reach at least 3,000 artists), gathering the responses, and analyzing the data takes about six months. In Olympia, we were extremely impressed by the number of artists who turned out for the artist focus group and the public meeting to talk about space needs. The public meeting attracted over 330 participants, most of whom were artists. In addition to showing up to hear what we had to say, they also gathered in the lobby of the theater to display information and talk about their organizations. Many of the performing arts groups also performed for us on stage to give us a sense of the artistic depth and buy-in to the concept of an Artspace project in Olympia. The number of artists attending the public

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meeting was a new record for Artspace. This level of participation and interest is a terrific indicator of the need for affordable artist space in Olympia. Although some of the artists clearly would not income-qualify for affordable housing as defined by Section 42 of the IRS code, we believe that a formal Artist Market Survey would reveal a significant number of income-qualified artists eligible for live/work space as well as working studio space. The artists who attended the focus group represented a wide range of art forms as evidenced by the presence of a puppeteer and an artist whose goal is to “transform the world through art and chocolate.” See the attached information from the focus group attendees regarding their needs for space and arts forms represented. Typically the focus groups tend to attract older, more established artists and not the wider age range represented in our projects. This was the case in Olympia, though the group was diverse by artist craft/discipline. We did hear and see evidence at the later public meeting however, that there is a great need on the part of younger artists residing in Olympia and those coming out of the local art colleges and programs. In Olympia, as in many communities, we heard from a number of artists who, even though they can afford their own studios, would prefer to be part of a larger community of artists because it is less isolating than working at home or in a private studio. If an Artist Market Survey is undertaken here, it will be important to collect information about the interest in studio-only space as well as live/work space. If a mixed-use project is under consideration, the survey can also be used to identify the need for space for arts organizations, creative businesses, and arts-friendly commercial ventures such as coffee shops, small cafes and restaurants. Given the size of Olympia and its proximity to Tacoma and Seattle, our educated hunch is that an Artspace project in Olympia may be large enough to support 30 to 40 live/work units with other kinds of space for the arts as well. For Artspace and any financial institutions that get involved in a future project, this estimate will need to be verified by an Artist Market Survey. It will be essential for the survey to reach the surrounding communities of Lacey and Tumwater as well as other communities within a 50-mile or so radius. In conducting a survey, the community and Artspace should plan to conduct outreach to the area’s largest non-Caucasian ethnic groups, in this case from China, Cambodia, and Mexico. The Hispanic and Asian populations in the Olympia area are growing and currently represent approximately 10% of local residents. A project that celebrates this diversity will be a stronger, livelier project. SITE ANALYSIS

During a preliminary feasibility visit, Artspace’s primary goal is not to select a site but to identify candidates for further study should the project move forward. Accordingly, we toured buildings and sites, primarily on the east side of Downtown. We note that almost all of the current downtown housing units are for low-income individuals and families (1,003 subsidized units compared to four market-rate units). Housing for the artist population is often referred to as “Workforce Housing.” Artspace views live/work housing as a form of workforce housing. Most artists have part-time or full-time work outside of their creative work. These spaces stabilize individual entrepreneurs and cottage industries.

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Here is a summary of our thinking about the areas and buildings we toured.

Montgomery Ward Department Store on 4th Street Many Olympians have fond memories of the old Montgomery Ward Department Store Building in the east side of downtown. While the building has great bones for redevelopment, at 20,000 square feet it is simply too small for an Artspace project. However, its large windows and access to light make it a terrific building to consider for arts uses such as studio or retail spaces.

City-owned sites We looked at three city-owned sites, identified on the map as A, B, and C. All are on the north side of the downtown area.

SITE A: 318 State Avenue N.E. This site at State and Franklin, across the street from the Transit Center, represents two-thirds of a city block with a footprint of 47,045 square feet. The State of Washington is currently cleaning up this site and the City has purchased it. Environmental cleanup was underway at the time of our visit. While the site is less connected to the rest of downtown Olympia, we feel that this is a minor point and that the site has excellent potential.

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SITE B: 205 State Avenue N.E. This 120x120 city-owned lot at the corner of State and Washington Street N.E. on the east side of Downtown is a great location for a variety of reasons. This site is across the street from the Transit Center and could qualify for additional incentive funding for a Transit Oriented Development (TOD). As a city-owned property, there is potential for the site to be acquired at below market rate if the redevelopment plan meets city housing goals. There is also potential for joint development with adjacent parcels.

SITE C: Columbia Parking Lot This parking lot at the corner of Columbia Street N.W. and Fourth Avenue S.W. is a large parcel one block from the downtown waterfront. It is the site of a failed low income senior housing development. It is also across the street from a Senior Center and a childcare center. A location near these services would be positive for a multi-family development.

Other sites We briefly discussed and drove by an old warehouse and lot on B Avenue N.W., currently owned by the State Fish & Wildlife Division and across the street from a multi-family senior housing development. Conclusion There are ample real estate opportunities for an Artspace development to be created in the Olympia area. If the concept does not work on the sites we toured, we believe the community is interested enough to continue to pursue other possible sites. Identification of an artist market, clarification of the space needs of the area’s arts and cultural organizations, and a deeper understanding of the potential financing of an Artspace development in Olympia will help us further evaluate these sites and others.

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FINANCIAL ANALYSIS

An Artspace live/work project represents a significant investment of civic resources. A typical mixed use project with 30 to 40 live/work units of housing costs between $12 and $15 million, and predevelopment expenses – the “soft” costs, such as architects’ fees, that must be met before construction can begin – are seldom less than $700,000. Although a variety of federal programs, such as low-income housing tax credits, can be used to generate revenue for construction, we look to the community for predevelopment revenue and commitments of affordable housing allocations in a combination of Community Development Block Grants (CDBG) and HOME funds, or the equivalent, sometimes from philanthropic sources. Although it is never easy to assemble the financing for an Artspace project, and particularly difficult in the current economic climate, Artspace is fortunate to have a wealth of relevant experience, having put together the capital resources for three projects in the state of Washington; in addition, we understand the federal and state programs well. Understanding the local market is the area in which we would need help. Fortunately, it is clear that local housing and community development expertise is present. Whether the City of Olympia, the philanthropic community, or a combination of these entities is prepared to make this kind of commitment remains to be seen, but we were encouraged by the active participation of City administrators and elected officials as well as state representatives and senators and their staff. One State Representative commented on how the arts can help to change the perception of downtown from edgy and unsafe to one of dynamic and welcoming. These are all key indicators for us, in that projects seldom become reality without strong civic support. The role of philanthropy Philanthropy plays an important role in every Artspace live/work project. In a typical project, between 10% and 15% of the total revenue comes in the form of gifts from foundations, corporations, and, in some cases, individuals. In our recent experience this “philanthropic gap” has ranged from $1 million to $2 million, depending on the size of the project and the availability of other sources of funding. Although the philanthropic community in west central Washington may be small in number, there are several foundations that have a precedent of contributing to cultural and community development projects. These include the Murdock Trust, Paul G. Allen Family Foundation, Olympia Community Foundation, Heritage Foundation, Olympia Federal Savings, South Sound Bank, U.S. Bank, Anchor Bank, and Timberland Bank, to name a few. The largest recent capital campaigns were an $18 million campaign for the new Children’s Museum and a $1.1 million capital campaign for Harlequin Theater. Other campaigns have stalled due to economic struggles. A typical Artspace mixed use live/work project would have a gap between $1 and $2 million that would need to be filled from philanthropic or other grant sources such as the Washington State Building for the Arts program, a competitive biennial allocation of state funding for cultural facility development.

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A clear understanding of the local funding community’s capacity and willingness to participate in a project is an essential prerequisite to moving forward. Low Income Housing Tax Credits Several people expressed concern about the legality of using Low Income Housing Tax Credits to fund the residential component of an artist live/work project. The federal Housing and Economic Recovery Act of 2008 specifically addresses the right of developers like Artspace to use Low Income Housing Tax Credits to finance affordable housing targeted to certain specified groups – including artists: “A project does not fail to meet the general public use requirement [of the IRS Code] solely because of occupancy restrictions or preferences that favor tenants…who are involved in artistic or literary activities.” Other funding sources Specific programs that could aid a mixed-use affordable housing development include Washington State Housing Trust Fund, Community Development Block Grants (particularly with emphasis on workforce housing), Thurston County HOME Funds, bonds issued by the City (for a potential arts center component part of the project), among other sources. Contributed land by the City of Olympia shows local support for the project. If the development is within a designated Urban Renewal Area, it could be qualify for other funding sources. Additional sources could include fee waivers, economic development initiative grants, etc. Discussions about the sources of funding and financing will undoubtedly continue if a project moves forward. LOCAL LEADERSHIP

We were very impressed by the depth and quality of the Olympia leadership in its many forms. Two City Council members, Jeff Kingsbury (also Mayor pro tem) and Rhenda Iris Strub, were strong advocates for an Artspace project and had clearly done their homework by visiting several of the Artspace projects in Seattle and Everett. Mayor Dough Mah spoke in support of an artist-based project during the Civic leadership meeting, in addition to taking the time to provide a formal introduction at the well-attended public meeting. Stephanie Johnson played a key staff leadership role. She and her colleagues and the members of the Arts Commission were extremely well organized and adept at assembling the civic and cultural leaders we needed to meet. It was not uncommon for key individuals to attend more than one session. A City Councilmember and former Mayor of Lacey, Virgil Clarkson, attended one of our sessions as did State Representatives Gary Alexander and Brendan Williams, State Senator Karen Fraser, Port Commissioner George Barner, and the assistants to State Representative Brendan Williams and County Commissioner Karen Valenzuela. We came away with the clear sense that local leaders are excited about the possibilities, have a strong sense of how to move forward, and are motivated to do so. A unanimous vote by City Council (which includes the Mayor) provided the funding to bring Artspace to Olympia for this first visit. It will be important for our hosts to carry through and continue to communicate with interested parties; to connect the arts, civic, and development communities; and to keep up the momentum to ensure the path to a successful project.

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Next Steps

lympia impresses us as a strong candidate for an Artspace live/work project. There seems to be a consensus strongly in favor of an affordable mixed-use live/work project in the downtown core. The need and passion for affordable space for the creative

community included discussions of space for creative businesses, galleries, small performance spaces, working studios, etc. There are several strong candidate sites for such a development. The opportunities that are before us today may be different than those that are present a year from now. If a project has merit, multiple sites will work for different reasons. We heard again and again that an Artspace project would be a catalyst for continued downtown redevelopment as well as a way to increase the number of downtown residents, a critical issue for the City and a way to stabilize space for the creative community. We are always encouraged when communities are looking at all of the above rather than only economic development or only artist space. The impact of an Artspace-style project could be profound in and around the downtown core where multiple vacant or underdeveloped and underutilized sites exist. These kinds of projects often provide a sign of progress that can act as an additional incentive for other kinds of development. As an immediate next step, we recommend an Artist Market Survey. The survey’s primary goal will be to determine the size of the market for an affordable live/work project. In our experience, a three-to-one redundancy is sufficient to ensure the success of a proposed project – that is, for every live/work unit under consideration, we seek three responses from artists who say they would be interested in relocating if the project is built. In other words, if a 35-unit project is contemplated, the survey should identify at least 105 artists who would like to become residents. The Olympia artists with whom we met seem ready to participate in such a survey and excited about telling their peers. We had a sense that for every artist who attended our meetings, many more are in need of space and interested in being part of a larger arts community. The survey also will help determine other variables, such as the ratio of one-, two-, and three-bedroom units, what is truly affordable in Olympia, the need for amenities to serve specific kinds of artists, and perhaps preferences for location. Although it is impossible to build a live/work project that addresses every artist’s needs, we can use the data collected by the survey to inform our planning. Should local developers wish to incorporate space for the arts in their current or planned projects, the information could also be useful to them, if you would wish to disseminate information from the report. Because of the strong interest in a non-residential component to the project, we also recommend that the City consider a second survey focused on arts and cultural organizations and creative businesses. Information gathered about organizations and businesses interested in relocating or renting space in a new multi-use facility will help us determine the amount of additional and shared spaces that could be included, appropriate rental rates, and the specific mix of uses. Equally important, it will allow Artspace or any developer, to begin one-on-one conversations

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with potential future arts and creative tenants and/or create a foundation for the formation of a new arts center that would support and complement the broader arts community. A market analysis of this magnitude will take four to six months to plan, execute, and analyze. We conduct our surveys online, which not only simplifies data processing but also makes it easier to determine the need for midcourse corrections. For example, if early responses suggest that some artist groups are not responding to the survey in representative numbers, we can conduct additional marketing and outreach to make them aware of the survey, establish a telephone response system for artists who lack computer access, and so on. Several leaders were vocal in their desire to participate in organizing these efforts. We encourage a continued dialogue among artists, arts organizations, the development community, and civic leaders. It is important to maintain the momentum that has begun and to ensure that everyone works cooperatively toward the goal of creating either a single project or setting the stage for multiple initiatives. The core committee of community leaders and arts leaders that was organized for our visit is a great place for the initiation of next steps to occur. This public/private partnership will be key in addressing the market survey and public relations and generating the “muscle” it takes to continue the dialogue about an artist-focused project in Olympia. An online resource that may be helpful in this regard is www.artistlink.org. Here you will find case studies and information for both municipalities and developers that want to create space for the arts. We also encourage the core group, along with individual artists, to take a field trip to several more Artspace projects in the region. If possible, a trip to Minneapolis/St. Paul is always high on our list as well since there are nine projects there to see and visit to learn more about how these kinds of projects fare over time.

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OLYMPIA ARTIST QUESTIONNAIRE SUMMARY – 9.22.2009 This is the raw data collected from a survey of artists who attended the focus group conducted by Artspace during the Preliminary Feasibility Visit. Will the coming survey follow along the same lines of questions? Maybe foreshadowing opportunity . . . .

1. What art(s) disciplines do you participate in? (Artist A)  Visual, collage, mixed media, PMC jewelry, poetry  

(Artist B) Custom tubs & sinks, functional ceramic installation (Artist C) (word?) painting- visual

(Artist D) Visual arts & photography, film/ video, performance & conceptual art, new genres, mixed media installation, music (voice & drums)

(Artist E) Drumming, luminaria, batik, paper mache, puppetry (Artist F) Performing Artspace Projects (Artist G) Dance, percussion music (Artist H) Writing (Artist J) Puppetry (Artist K) Pottery, ceramics (Artist L) Mixed media constructions, glass, printmaking, sculpture (Artist M) Painting, printmaking (Artist N) Live performance, theater, storytelling, spoken word (Artist P) Textile design, fine art painting (abstract) ** 3 artists left this question blank

2. Do you have dedicated studio space outside of your home? YES      5/17    30% NO      11/17    64% No Response    1/17    6% 

** The 5 artists that have dedicated studio space outside their homes pay the following: a. $200/ 2 hours/ week including instrument storage b. $325 (office), $135 (storage), $400 (rehearsal), $1000 (performance)/ 

month c. $200/ month (not enough space though) d. $950/ month e. $1528.11/ month  

3. Do you have live/ work space? YES      7/17    40% NO      8/17    47% No Response    2/17    13% 

** The 7 artists that have live/work space pay the following: a. $575.11 b. $450.00 

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c. (blank) d. $1000 e. (blank) f. $20 (20% of property taxes) g. (blank)  

4. Would you be interested in renting?    YES  NO  No Response Studio Space  12/17       70%  3/17       17%  2/17       13% Live/ Work Space  7/17          40%  5/17       30%  5/17       30%  

5. Do you have artist friends or colleagues who might be interested in renting affordable studio or live/ work space, in a new facility in Olympia, who were not able to attend this meeing? 

YES      17/17   100%  

6. Do you have any other comments or thoughts you would like to share?  “I represent the farmer’s market where I work with over 100 musicians/ 

artists. It is difficult for me to answer the first few questions since there are so many people I am representing.” 

Build the project as green as possible.  “I love this idea and it is very expensive to have a home and studio/ gallery. I 

love the community spirit of this and bringing artists together.”  “Music groups need additional space for dancers in March and April & for 

weekend workshops year round…” (also) Accessible storage space, preferably on ground floor. 

“Loft on Cherry Street isn’t handicapped accessible.”  “Dancers need rehearsal space AND performance space(s)‐ a need for the 

right insurance at an affordable rate. Many groups also need some dedicated storage space at their studio space. They by and large will not be residents of the building. Private studio owners are not represented here. Some of them do not have enough rehearsal space because the studio is taken up with classes to pay the bills.” 

Need work space, rehearsal space, performance space.  “Wonderful concept to support the arts & artists. Olympia could use the 

space as an anchor for a destination arts district.”  “I’ve lived in Kalamazoo, MI which as a lively arts community occupying an 

old warehouse and it has turned into a (word?) place and destination center. Such a space could be of great benefit to the community at large.” 

“I’d like an affordable rehearsal space that can be shared amongst multiple performance groups.” 

“I need teaching space for art classes‐ combining art center with studio art/ living space is essential. My concern is supply/ demand as for a total number 

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of units that would be provided. As I get “older” (62) I don’t want the upkeep/ maintenance of a single house/ yard.” 

“I’m excited about the value of an artist wrok/ live/ performance space to Olympia as a whole community.” 

“Designing a building where living space is on some floors and studios on others‐ ie live/ work not in the same open floor plan. 

“There are many talented artists in the area and we need a more cohesive arts community…bringing artists together and building more support of arts awareness within Olympia.” 

“Question: Has a survey been taken of area artists (all disciplines been administered ever/ recently?” 

“My studio space is wherever I can find it. apt, driveway, front yard, etc.”  “This questionnaire could have been put2 to a page thus cutting paper use in 

half.”  

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ARTSPACE 101:

OUR MISSION, HISTORY AND PROGRAMS

Artspace Projects’ mission is to create, foster, and preserve affordable space for artists and arts organizations.

INDING AND RETAINING affordable space is an age-old problem for artists painters, sculptors, dancers, and others who require an abundance of well-lit space in which to work.

Many artists gravitate to old warehouses and other industrial buildings, but their very presence in an industrial neighborhood often acts as a catalyst, setting in motion a process of gentrification that drives rents up and forces the artists out. This is precisely what happened in Minneapolis’ historic Warehouse District in the 1970s and led to the creation of Artspace in 1979. Established to serve as an advocate for artists’ space needs, Artspace effectively fulfilled that mission for nearly a decade. By the late 1980s, however, it was clear that the problem required a more proactive approach, and Artspace made the leap from advocate to developer. Since then, the scope of Artspace's activities has grown dramatically. Artspace is now a national leader in the field of developing affordable space for artists through the adaptive reuse of old warehouses, schools, and commercial buildings. Artspace’s first three live/work projects were in Saint Paul: the Northern Warehouse Artists’ Cooperative (1990), Frogtown Family Lofts (1992), and Tilsner Artists’ Cooperative (1993). Since then, Artspace has expanded its range of activities to include live/work projects in Duluth (Washington Studios, 1995); Pittsburgh (Spinning Plate Artist Lofts, 1998), Portland, Oregon (Everett Station Lofts, 1998), Reno (Riverside Artist Lofts, 2000), Galveston (National Hotel Artist Lofts, 2001), Chicago (Switching Station Artist Lofts, 2003), Seattle (Tashiro Kaplan Artist Lofts, 2004, and Artspace Hiawatha Lofts, 2008), Fergus Falls, Minnesota (Kaddatz Artist Lofts, 2004), Bridgeport, Connecticut (Sterling Market Lofts, 2004), Mount Rainier, Maryland (Mount Rainier Artist Lofts, 2005), Houston (Elder Street Artist Lofts, 2005), Buffalo (Artspace Buffalo Lofts, 2007), Fort Lauderdale (Sailboat Bend Artist Lofts, 2007), Brainerd, Minnesota (Franklin Art Center, 2008), and Santa Cruz, California (Tannery Artist Lofts, 2009). In all, these projects represent 846 live/work units. In the mid-1990s, Artspace broadened its mission to include non-residential projects. The first of these, the Traffic Zone Center for Visual Art (1995), transformed an historic bakery in the

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Minneapolis Warehouse District into 24 studios for mid-career artists. Other non-residential Artspace projects include the Minnesota Shubert Performing Arts and Education Center, a $41 million, three-building cultural complex in downtown Minneapolis. Over the last few years, Artspace has evolved from a Minnesota organization with a few national projects into a truly national organization based in the Twin Cities. We now have projects in development, predevelopment, or feasibility in more than a dozen states. Our national consulting program has helped communities in almost every state address their arts-related space issues. The nature of our work is evolving, too, to include multiple-facility projects, long-range planning, and arts districts. Artspace programs fall in three broad categories: property development, asset management, and national consulting. Property development

Development projects, which typically involve the adaptive reuse of older buildings but can also involve new construction, are the most visible of Artspace’s activities. To date, we have completed 24 major projects. Artspace live/work projects are operating or in development from coast to coast.

Asset management

Artspace owns or co-owns all the buildings it develops; our portfolio now comprises more than $250 million worth of real property. We strive to manage our properties so that they will be well-maintained yet remain affordable to the low- and moderate-income artists for whom they were developed in the first place. Revenues in excess of expenses are set aside for preventive maintenance, commons area improvements, and building upgrades.

National consulting

In addition to its roles as developer, owner, and manager, Artspace acts as a consultant to communities, organizations, and individuals seeking information and advice about developing affordable housing and work space for artists, performing arts centers, and cultural districts – usually, but not always, within the context of historic preservation.