The Crested Butte News Serving the Gunnison Valley since 1999
The debate over whether the town of Crested Butte should transfer the Center ownership title to the Center for the Arts board of directors seems to simply come down to control. Who ultimately controls Big Blue? The Center built and maintains it, so Center reps argue they should control it. The town supported the Center by allowing it to be built on town land, donated money and in-kind donations totaling about $1 million. It is the major showpiece as one comes into town and councilmembers constantly bleat about not getting rid of town assets so there is some sentiment to not give up town control. The county made a deal to originally donate the land to CB for public use (it was an old county shop) and doesn’t want it to devolve away from public use so the county has indicated it wants to retain their unlikely but potential control if everything hits the fan. All are good points. But the discussion has been going on too long with little different perspective coming to light the last few meetings. As hard as it is for councilmembers not used to saying no to constituents, it is past time to make a decision and move on.
Let’s get the noise out of the way. Everyone on all sides wants to see the building remain as a thriving arts center. No one is against the arts. Everyone appreciates the success of the current staff, board and donors. The Center is five years into an 80-year lease agreement. The discussion should be centered on the possible good and bad outcomes in five, 30, 50 years. As far as I can tell, there has never been any noticeable interference by the town on the operations of the Center in the decades it has been there. A key motivator seems to be that a donor has pledged $1 million to pay off the remaining Center construction debt if title is transferred to the non-profit board from the town. That’s real money and would no doubt be appreciated, but in all the public discussion I haven’t heard that donor step up to make the case for that position. The Center with its size and location is perhaps the highest profile town building in the valley.
I am not sure if this initiative from the Center is coming from the board, the staff or the donors, but staff is leading the charge and doing what they are paid to do. In this circumstance, that is to charm and persuade councilmembers for the title transfer. The council on the other hand should be there to make sure that a major town asset doesn’t fall into a bad situation where they lose total control and get something there they don’t want. Most on the council seem ready to give up that control by surrendering its ownership of the building while keeping ownership of the land and attaching deed restrictions to the title. That could reduce future risk but as made clear by the town attorney, that risk will not be eliminated.
The bottom line is that whoever owns the title controls the situation. If a conflict arises, possession is nine-tenths of the law and if there’s a question, the expensive attorneys get involved and the dice are rolled.
In my conversations with Center staff, they present an optimistic future with the non-profit board holding the title. Debt is eliminated and progress with future plans for the old building and better operations in the new one is immediate. Donors who want to be assured their contributions to the arts facility are made forever, are protected in perpetuity so new contributions will soar. All is right in the world of rainbows and unicorns. And it might be. In fact, chances are it would be. But…
I can say that pretty much every local non-profit that is currently considered in the diamond class of the valley has gone through some controversial times. The CB Land Trust, KBUT, HCCA, the library, fire district, the valley’s housing authority, have all had some major social or financial speed bumps. Some clouds are inevitable in the land of non-profit rainbows. Heck the new building was originally estimated to cost about $16 million but came in closer to $20 million.
It’s not like the Center is the only non-profit type of organization in a similar town partnership. CB Nordic, the fire district, Mountain Express all have super cheap long-term leases in town-owned facilities they constructed. In two cases, the fire district and Mountain Express, they are planning to leave the town-owned buildings for other locations. With no hassle, the current facilities will remain owned by the town for future community uses.
The point is that no matter how good an organization is now, the dreaded worst-case scenario or just some sort of unforeseen glitch can happen when local volunteer boards are involved. It’s just part of the deal. It seems more prudent to have ownership of such a prominent public building controlled by public officials elected and responsible to the town citizens than by an appointed board.
As elected representatives, the duty of councilmembers is to the citizens. Councilmember Gabi Prochaska is not wrong when she points out that arts organizations everywhere struggle financially and that could happen here. She also points out the current board, staff and donors do a great job. And they do. But I’ll bet $1 to $100 that none of the board or senior staff will be there in 50, 40 or probably even 15 or 20 years. The council’s job in this circumstance is to analyze risk in the future and protect the town’s interest in a less-than-ideal scenario – because that could happen.
Center staff tout the fact they’ve quickly retired $4 million in debt, so I anticipate that success can continue, perhaps at a slower pace, but with focus why couldn’t they chop away that last seven figures.
On top of everything, there’s the location. Big Blue is located at the entrance to town in the middle of the town park. It doesn’t get much more high profile than that building. If it was located say where Big Mine Ice Arena is, the issue might be a little less weighty. For the town council to potentially give up the little, but ultimate control they have over one of the most visible buildings in the valley, seems negligent.
When the town attorney makes it clear to the council that “control is control” and they can choose to give it up knowing that risk cannot be eliminated – he is right, they can —but it sure seems remiss. We all know the town will be asked to clean up any future financial mess if one occurs, and they will have no choice given the location.
If it is just a money thing and some councilmembers believe Center success is the most paramount town priority, address that. The council is going through its budget process and while anticipating a leaner financial future, it has millions of dollars in reserve funds. Go ahead and pledge a quarter million-dollar match to eliminate that last $1 million loan — or better yet, use it as matching funds to start a long-term endowment. Partner with Center donors to help fund future stability.
There must be a pretty significant reason to give up ownership of a major building owned by the citizens of CB. I would think the decades-long lease should alleviate the fears staff said donors have, but I’m not a significant donor. Heck, ask for a 1,000-year lease and I’ll bet you would get it. Come in proving you will have a $5 million endowment by this time next year, or pledges of $8 million to renovate the old building with a title transfer instead of a promise to take care of the remaining $1M debt, and I bet the conversation would continue. Oh, and deed restrict the heck out of that title.
Citizens and former elected officials Leah Wiliams and Jim Starr were right during the recent public discussion — we can be friends and disagree with political actions. Big Blue is a center of community and has been a big community success. No matter what decision is ultimately made, life will go on, and chances are no disaster will befall the building. Unless new info is presented, it seems time for councilmembers to do their duty and make a decision based in reason and protection for the people they represent.
Until circumstances change and the county issue is resolved (there’s probably a path somewhere), a significant endowment is guaranteed for future stability, and some sort of accountable public oversight is guaranteed…now is not the time for the town council to forfeit the biggest building at the entrance to town in the middle of the park.
—Mark Reaman
