NOW AVAILABLE ON DVD: MAKING UNION ART

DEVELOPING ARTISTS' SPACE: A checklist

 

Karen Guzak, October 1999

 

In any complex building project, there are always interrelated and overlapping processes running in parallel, such as creating the vision, finding a property, establishing ownership, marketing, financial issues, permit issues, construction issues, etc. I have found similar, general processes for successful completion in each of the several building projects I've done. The specific details of any project are different, and are based on the individual problems of the site, the time, the money, the people you work with, and the vision. 

 

Therefore, much of this summary checklist is in the form of the common questions, issues to check, people to contact, problems to anticipate - and a few thoughts to inspire. It is a beginning - meant to assist those idealistic novices who want to create space for artists.

 

Why Art?

 “You can feed and clothe a person, but to what end? The arts are where we discover and express our humanity, privately or collectively. They provide us the tools to share our common joy and grief, to find communion with each other, to pass our stories and wisdom from one generation to the next. If everything is taken from us but life itself, what remains? Our voices, our bodies. With that alone, our humanity may be preserved." Claire Peeps,

“Why Art?” Published in Vol. 9, Number 2, Fall 1998 journal of the GRANTMAKERS IN THE ARTS.

 

Why Artists? From 1992 census data, Washington State has over 40,000 artists.

"When artists mold the ordinary into the extraordinary, we experience surprise, awe, and mystery.  When they step into new waters, they tease us, challenge us, or provoke us to alter our perceptions. They draw from our heritage, express and interpret our culture, create new traditions, and foster our dreams. They bridge diverse communities, engender understanding and hope, and leave a legacy which enriches our lives."

"The works of art that enrich our lives begin with an individual artist, long before they reach the   museum stage or publisher." From Artist Trust, Vision and Values statement 

           

Who is an artist?

As determined by peer review process: Any person who is regularly engaged in the visual, performing, or creative arts as demonstrated by a body of work.

 

Why space for artists?

There is currently an artist space crunch in Seattle. This city has more and more talented artists needing an ever-diminishing inventory of affordable space for living and, more importantly for working. We are losing the valuable cultural and quality of life resources artists bring to our city, as artists leave for Tacoma, Bremerton, and Everett.

 

Who can be a developer?

Any creative person who has the will to figure out how to develop space for artists. People with heart, tenacity, and lots of chutzpah can do anything. Experience helps, but I believe the knowledge of "how to do it" will follow the "doing of it" - and ask for help along the way.

 

"If a man will begin with certainties, he shall end in doubts, but if he will be content to begin with doubts, he shall end in certainties" Francis Bacon

What is the vision?

Think Big; it takes twice as much time to develop ten times as much space. Think economy of scale.

 

What does that artist space vision look like?

Location -

Proximity to services & supplies

Proximity to other arts activities

Ease of access -(cannot be on a main throughway in Seattle's industrial areas)

Zoning - check the code!

If the building is in an industrial zone, use must be compatible with industrial use

Change of use requires application and neighbor input

Be prepared to negotiate some zoning issues with DCLU - eg. Open space, parking

Building requirements:

Ceiling height

Free span and space between posts/walls

Light - natural or artificial and fresh air

Floor structure

Access - elevator or loading dock

Parking

Common space?

Identify any group priorities: Is the creation of community part of the vision?

Such as: Laundry, garden, library, meeting room, copy machine, cable TV, foundry wood shop, dark room, gallery

Size of units -  Number of units. 

For living and/or working or only for working

Personal space needs: ease of access, fresh air and light,

            Clean space: Bath, cooking, eating, sleeping, office

Dirty space:  open, flexible work studio, high ceilings, good light, storage

             

Live/work space size: Minimum 1200 sq.ft. plus 200 sq. ft storage for one artist per unit;

 Minimum 1800 sq. ft plus 400 sq. ft. for two artists per unit.

 

Who do you need on the professional team?

The first team member is a realtor to help find this building or site.

Interview realtors to determine:

What is their experience with commercial spaces?

What is their knowledge of artists' needs?

Will they support the vision with courage and expertise?

                        Comparable sales

 

What does the seller want?

            What does the seller need, and what compromises can be made?

 

Find a seller who is motivated to sell with a cooperative broker who will structure a deal that meets the needs of both buyer and seller. If the seller has unrealistic expectations, let the project go, and try again later.

 

Structure an agreement with contingencies and enough time to determine feasibility

            "Contingent on obtaining financing satisfactory to purchaser."

            "Contingent on a architectural/structural inspection satisfactory to purchaser."

            "Contingency on an environmental evaluation satisfactory to purchaser."

 

Write promissory notes if at all possible, rather than checks, as earnest money. Write earnest money agreements with contingencies. Make offers on several possible buildings. It's gambling, and many offers will never materialize - for a variety of reasons. You only need ONE to work out.

 

Who are the other key members of your professional team?

Carefully select and interview these importnt team members:

            Architect. Essential for negotiating various city code and zoning

requirements. Also the architect is the key player in developing the overall concept for use of space and circulation issues. Experience in artists' live/work space design is helpful. Find an architect who is a good collaborator -one who has some humor.

The architect can also set up pre-construction conferences with Department of Construction and Land Use (DCLU) to discuss and negotiate zoning and building code issues.

 

Structural engineer. Works with the architect to evaluate condition of building and set out a course of structural upgrades.

Lawyer. Helps with purchase documents and the legal forms of ownership

Contractor or Construction estimator: Helps with cost estimates for construction

Banker, or financial partners.  Money from someone/somewhere is essential. 

 

First team inspection of a building: What are you buying?

 

With your team, question how the building/site works regarding:

Zoning Issues: See DCLU Client Assistant Memo 114

Building Code Issues which are based on health and safety issues

See City of Seattle, Client Assistance Memo 114

Fire safety issues - sprinklers, type of construction

Circulation - 2 ways out of each unit in case of fire code

Environmental issues - asbestos, lead in paint, oil tanks, other toxics

Noise levels

Elevator and loading dock

Condition of structure

Roof

Foundation,

Dry rot, and other damage

Structural seismic considerations

                        Walls tied to floor & roof structure?

                        Type of construction: masonry or heavy timber

Windows and unit ventilation

Energy issues

Electrical service

Heat

Plumbing - sewer connections, water pressure

Open space and Common space

Parking requirements

 

What does this preliminary feasibility study cost?

            What are estimates for professional fees? (include these as part of the cost)

 

How do you determine a scope of work for improvements?

            How does the vision meet what is really needed for the project success?

 

What comprises a "substantial alteration" of an existing building?

            What are high and low cost estimates for building the vision?

How can you keep building alterations to a minimum to avoid triggering greater

costs for a substantial alteration eg. Seismic, energy code, fire safety, etc.

 

Meet with a DCLU representative before beginning an artist's studio/dwelling project. Be clear about what you want, and have a back-up plan for doing the minimum.

 

What will the total costs be for both "Soft Costs" & "Hard Costs?"

How do you create a budget?

            See attached 4 work sheets titled  "Project Cost Checklist"

 

Determine Cost estimates for renovating shell and common space.

Those shell costs typically include:

                        Professional Fees for the Core (Architectural, Legal, Structural, etc.)

Building permits

Site preparation, including parking lot and landscaping

                        Demolition costs for the building core

                        Building foundation

                        Exterior walls, including painting or surface treatment, and insulation

                        Roof, and floors, common structural elements (e.g. beams, posts, etc.)    

                        Exterior doors, entry areas, and doors to common spaces

                        Exterior windows and common stairways as required by code

                        Interior walls in common areas, including surface treatment, such as                                                           stairwells, elevator, loading dock, laundry, etc.

                        Plumbing stacks, roughed in plumbing to individual spaces and                                                                all plumbing for common areas

                        Electrical service, roughed in to individual spaces with individual                                                                    panels and all electrical work for common areas

                        Gas service stubbed to individual floors or spaces with individual meters                                                            and gas service as required for common areas

                        General mechanical needs for the building common areas             

                        Elevator

                        Basic sprinkler system for entire building (not including variations to                                                   accommodate individual tenant needs)

                        Telephone and Cable service stubbed to individual spaces

                        Security System and Fire alarm system

                        Roof top deck and/or other common spaces

                        Construction management, project management or general                                                                               contractor fees or wages for the core

                        One percent for art or artist integrated work

                        Costs of borrowing money for the project

 

                       

Determine Cost estimates for renovating personal spaces -

Tenant/shareholder improvements

Tenant Improvements are generally defined as any improvements or additions to the building that are paid for by individual tenants, and confined within individual tenant spaces. For example: interior walls, plumbing fixtures, cabinets, electrical and lighting fixtures, furnaces, hot water heaters, floor and wall coverings, built in appliances, etc. Some tenant improvements may be shared by two or more tenants, for example, common walls between spaces.

Where will the money come from? 

Seller financing; Buyer's funds

Combining financial resources from investors and /or partners

Bank financing

Public - private partnerships

Government money:  low-income programs, redevelopment money,

Are investment tax credits for historic or substantial rehab?

Leases, unit sales

 

What does a bank or financing partner need? 

            Appraisal and title search

            Loan to value ratio

            Funds for closing

            Uses of the property

            Record of debt repayment

Project proforma:

Sources of the incoming and proposed funds

Uses of the funds to repay financing and for Soft Costs and Hard Costs

Cash flow projections amortized over years to balance income with outgo  

 

What legal services are needed?

            Agreements between the partners in the project.

Corporate or partnership documents to create the legal entity that will develop

Corporate or condo documents for those who will own the property

            By-laws, any leases or subleases, and house rules

            Balance the legal needs of ownership and the social needs of community living

Deal with all potential problems

Outline processes to deal with every conceivable "what if"

At the Sunny Arms and Union Art Cooperatives: Those months of hard work, discussing our agreements and our plans for how the building would look and function were the time that our real community was created. It was a time when all had a chance to speak of our dreams and express our fears. It was a time when we came to know and eventually trust each other, and trust the process we had created for solving problems.Those who needed too much control,couldn't be team players, and couldn't trust the process, left the group.

As it should be.

           

What is the legal form of investment partnership?

            What is the form of investment contributions that work best for everyone?

            What are the tradeoffs for investors?

 

What is the legal form of ownership of the units?

            What are the tradeoffs of Cooperative ownership?

            What are the tradeoffs of Condominium ownership?

What are the tradeoffs of Limited Liability corporations or various partnership forms of ownership?

 

What is the profit or return for the developer and financing partners?

What are each individual's financial contribution, risk, and time commitment?

What does each individual need from this process?

Would financing partners agree to a timed payout over years or months?

Would partners agree to exchange work for future payouts?

Are there intangible returns that are not tied to monetary return?           

 

What about insurance?

            What insurance is needed for the construction phases?

What is needed for later occupancy?

Is the building insurance policy for "core" and all occupants get "tenants" insurance"

 

Real estate taxes?

            How much will taxes increase after renovation?

 

How is the group and how are individuals going to pay ongoing expenses?

What is the prorata share in the ongoing financial obligations such as:

Loan payments to the mortgage holder,

Taxes, insurance, and maintenance, utilities.

 

What are the penalties for non-payment or late payment?

 

How do you hire a contractor?      

How do you submit a "RFQ" Request for Qualification to contractors?

How do you interview and sort through qualified contractors?

When to submit specifications and plans for bid?

What to do when bids are over budget?

Rank the "positive, enthusiastic, can-do, creative quotient" very highly

 

What are the Pleasures and Perils of being your own contractor?

What about "sweat equity"?

What are the tradeoffs of  "self performing" or "self contracting" part of the project?

When to hire a manager to oversee and coordinate the project?

            What are the time and money tradeoffs?

            What about liability issues?

 

How to present this information and create a prospectus to assist in marketing the project?

            Contents of a full prospectus typically disclose:

                        Concept and vision of the project,

Include Name, Logo, and sketches of the project

Initial architects plans and elevations including unit layouts

Estimated or actual costs of units

                        Form of ownership, and ownership responsibilities

                        History of the building and the project

                        Location, with a map

                        Type of building construction and existing layout

                        Existing conditions, including environmental issues

                        Zoning and land use

                        Project developers and their past successful projects

Initial project expenses

Developer's fee

Financing structure, including alternate financing

Preliminary project cost estimates (if construction is not completed)

General contractor or construction/project manager

Tenant improvements, and tenant build-out responsibilities

Professional team members with experience and expertise

Purchase documents

Non-refundable payments, installment payments, and prepayment options

Initial estimated monthly payments

Maintenance fees with estimates for:

            Insurance

            Utilities

            Taxes

            Reserve fund

Articles of Incorporation

By-Laws

Leases or subleases

House Rules

Risks, such as:

            Delays in initial sales

            Delays in permitting or financing commitments

            Risks of owner or developer non-payment

Proposed time line                       

How do you advertise the project and create a concise, attractive description of the project?

          What are the newspapers that artists read?

            What arts organizations can provide information and a connection to artists?

            What are the benefits of direct mail to artists - working the network?

            What should be included in a brief flyer or brochure that will attract artists?

         

Good design sells a project. Incorporate harmonious design principles, especially the art of Feng Shui. 

Build in treasures and small gifts for pleasure and good luck. Good building karma lasts a long time.

 

How do we work and live together in an artists' project?

Determine organizing principles:

Democracy

Equality

Accountability

Mindfulness

Problem solving

Leadership

 

The "consensus" form of decision-making is death to progress. Vote for democracy.

 

How do you determine roles and responsibilities?

What are other models for roles and responsibilities?

What should By-Laws contain?

What are voting procedures and majorities?

What are the roles and responsibilities of the group officers or leaders?

            President, Vice President, Secretary, Treasurer

What is the term of service for officers? How are they elected?

How does an owner buy, sell, sublease, or pass a space through their estate?

            How often will the group meet, and what are the purpose of the meetings?

            How do you balance individual needs with group needs?

 

How do you structure House Rules, and what should be included?

            Occupant responsibility for cleanliness and good order of public areas

            Responsibility for keeping access and egress clear and fire doors operational

            Noise guidelines - (especially important in old warehouse buildings)

                        Work Noise - set time limits (e.g. 8 am to 10 pm weekdays)

                        Living Noise - normal living activities permitted 24 hrs. per day

            Musical instruments, stereos, TV kept low volume 10pm to 8am

            No bicycles in hallways - only in bike storage areas

Conflict resolution procedures - mitigation responsibilities of offender and offended

Garbage handling and disposal of art materials

Drainage traps in sinks for art materials

Handling of hazardous or flammable materials

Safety of all occupants

Children's play activities

Regulations about changes to exterior of building, e.g. signs and window coverings

Reasonable access to common spaces

Smoking regulations

Tenant Improvements and approval mechanisms for additions/changes

Pets: waste disposal, scoop issues, fleas, and noise

Master key and unit keys

Parking spaces and guest use

 

How much time does all this take?

Estimate these time tracks running more or less in parallel:

Finding a building - 3 months to 5 years

Feasibility Study: -3 to 6 months

Plans and permitting - 3 months to 1 year

Construction - 3 months to 2 years depending on scope of work

Marketing - 6 months to 2 years

Career growth as an artist having great space - a lifetime

Contribution to the artistic and economic vitality of the city - decades

 

Any lessons to be learned?

Any answers (a least temporarily) to the universal questions?

                        What are the internal blocks to moving forward?

                        What are the personal loss potentials and risks?

                        What are the rewards and the gain?

                        What can each of us do to make a contribution?

                        What is important in life?

 

"To say yes, you have to sweat and roll up your sleeves and plunge both hands into life up to the elbows. It’s easy to say no, even if it means dying ".Jean Anouilh

 

Remember hard times make the best stories. For triumph to mean anything, there must be adversity.

 

"It is up to each of us to lead the way, the leading from within to unite the inner life of spirit with the outer life of service. When we do, we will discover what the great spiritual traditions have taught, which is, simply, as we enhance our inner capacity for wholeness and freedom, we strengthen our outer capacity to love and serve. This is our common work. This is the call to the heart of philanthropy."

Rob Lehman in "Mind, Money, and Grace" Vol. 10, Number 2 Grantmakers in the Arts, Autumn, 1999