Business Planning for Promenade Arts District at Liberty Station
San Diego Redevelopment Agency
The Promenade at Liberty Station is a public-private non-profit arts and cultural center created as part of the larger redevelopment of the former Naval Training Center (NTC) near San Diego’s downtown. Funded through a combination of developer and City contributions, as well as historic preservation and New Market Tax Credits, the NTC Foundation has successfully renovated a number of historic buildings to create a home for a variety of performing arts and related organizations, as well as events facilities. However, NTC has not succeeded at attracting significant private financial support, and was requesting substantial additional funding from the City to complete the renovation of its remaining buildings. As a result, the organization’s debt burden would increase, causing further financial risk to funders.
BAE was engaged by the San Diego Redevelopment Agency to support a review of the facility’s business plan. BAE’s work included a review of the organization's development strategy, tenant selection procedures, operating budget, and potential revisions to its business plan. Work included meetings with NTC, a review of its financial statements, interviews with regional arts funders and organizations on demand and need for arts facilities, and a review of future NTC development plans. BAE then formulated recommendations to incorporate arts-related housing, create more flexible tenanting guidelines, pursue strategic partnerships with other arts organizations that could fund rehab of their own facilities, and increase special events activities to enhance revenues and NTC’s visibility. These recommendations were used by the City in its subsequent review and approval of NTC’s loan request.