Germantown Performing Arts Center received a state grant of nearly $1.4 million to help the suburban venue rebound from the pandemic impacts.
Gov. Bill Lee approved the Tennessee Nonprofit Arts & Culture Recovery Fund last year. Of the state’s $3.7 billion American Rescue Plan funds, $80 million is earmarked to help facilities like GPAC recover from financial losses caused by COVID-19. The funds must be used over the next three years.
GPAC received the funds this spring, and its board is asking the suburb’s Board of Mayor and Aldermen to enter a memorandum of understanding during its meeting Monday.
In a work session Wednesday evening, GPAC Executive Director Paul Chandler explained there are restrictions on how the money can be used.
The grant will not cover personnel expenses. GPAC is a non-profit, and the theater does not employ a significant number of people. Additionally, staff members are employed by City of Germantown, said Parke Kennedy, GPAC director of development. However, the grant can cover some costs the city has traditionally paid, such as furniture, equipment, building repair and office supplies.
“In the spirit of goodwill and in good partnership, the (non-profit) board has elected to offer these dollars to the city so the building can be brought up to speed and our organization can be healthier, and all of those assets would be turned over to the city as well,” Chandler said.
In 2005, the city entered an agreement with GPAC supporting its efforts by allowing use the space and helping fund operations. The memorandum aldermen will consider Monday notes the city, like GPAC, experienced financial hardship due to the pandemic.
The grant will cover several GPAC expenses the city usually pays. However, at the end of 2024, the initial agreement with the city will still be in place.
Due to the timing of the fund distribution earlier this year, GPAC was able to count $270,000 already incurred in 2022. The grant provides $684,500 in 2023 and $409,313 in 2024.
In addition to furniture, the grant will help pay for software and theater equipment. A new curtain for the main stage is also noted in city documents. The memorandum notes $110,000 for contract work in two different years.
The Grove at GPAC could see some new furniture as well as heaters for colder months.
Alderman Scott Sanders thanked Chandler for alleviating the burden from taxpayers, a sentiment Mayor Mike Palazzolo echoed.
Alderman Jon McCreery notes GPAC not only benefits Germantown, but residents from elsewhere. He said out-of-state visitors to shows stay, shop, dine in Germantown and enjoy its amenities.
“We are constantly looking at how we build audiences for citizens and visitors,” Chandler said. “What you experienced is a great example of that.”