Posting Language
Title
Authorize negotiation and execution of a Place-Based Enhancement Cultural Preservation economic development agreement with The Vortex for a total amount not to exceed $107,803 over a five-year term to support retention of this local legacy creative sector business. Funding: $20,715 is available in the Fiscal Year 2025-2026 Operating Budget of the Austin Economic Department's Economic Incentive Reserve Fund. Funding for the remaining years of the agreement is contingent upon available funding in future budgets.
De
Lead Department
Austin Economic Development.
Fiscal Note
Funding in the amount of $20,715 is available in the Fiscal Year 2025-2026 Operating Budget of the Austin Economic Department's Economic Incentive Reserve Fund. Funding for the remaining years of the agreement is contingent upon available funding in future budgets.
For More Information:
Anthony Segura, Deputy Director, Austin Economic Development, 512-974-3187; Matthew Schmidt, Division Manager, Austin Economic Development, 512-974-6415.
Additional Backup Information:
The Vortex is a legacy local business and creative space located in central east Austin for the last 38 years. As leaders in the growth and stability of the arts in Austin through its unique regional theatre, The Vortex provides an essential community destination with significant, professional theatrical productions, a community gathering space, a nationally-certified butterfly sanctuary, and its lively Butterfly Bar and food truck tenants. The Vortex engages in radical transformation through edge-walking artistic creations, women-led projects, tuition-free Summer Youth Theatre, and innovative collaborations featuring artists of diverse ages, genders, ethnicities, and backgrounds. Original work encompasses plays, operas, musicals, ritual theatre, devised collaborations, spoken word, and immersive experiences. Recent economic conditions and major cuts to the National Endowment for the Arts have led to shortfalls in revenue. This Placed-Based Enhancement Cultural Preservation economic development agreement will aid in restoring lost operating funding for a local legacy business and creative space, supporting the re-establishment of staff positions and better positioning The Vortex for long-term property acquisition.
Fiscal Impact Analysis
Using the Impact Dashboard fiscal impact model, the City is projected to receive $1,120,000 in total net benefits from the project over the five-year agreement term. The impact is inclusive of over $1,000,000 in net fiscal impacts tied to tourism spending over five years; this is driven by large numbers of non-local patrons demonstrated for this creative sector business. The total net benefit amount is calculated after the total Place-Based Enhancement Program award not to exceed $107,803.
The project is eligible for consideration under the Place-Based Enhancement Program guidelines and received the necessary score for an incentive of 100% of the amount of property taxes and sales taxes paid to the City allowed under the Place-Based Enhancement Program guidelines.
Contract compliance and award payment eligibility will be determined annually by the City and an independent third-party to verify that The Vortex has performed in accordance with the terms of the contract. Upon confirmation of compliance, the City will provide a Place-Based Enhancement Program award equal to a 100% incentive equal to the amount of actual property taxes and sales taxes paid to the City, up to the maximum award amount of $107,803.