Minutes of General Meeting of A.C.E. 8-9-10
 ( 7:00m Life Song Church Building
)


1. Called to order 7:20pm – Gary Wetzbarger

(Note: Late start due to mis-communications between Life Song persons to open building. A/C not on
– Board to address this with Life Song to avoid future such problems)

2. Reminded everyone to be sure and sign in attendance record.

3. Introduced & Welcomed our new Board Members:

    a. Fundraising Chair – Robb James

    b. Membership Chair – Pam Hubbard

    c. Directory Chair – Diana Wetzbarger

    d. Request a new Membership Education Chair 

(to schedule, notify board, create flyer to post and confirm our monthly presentations)
-Please think about taking on this position: It is not difficult, but it is important and requires lining up 11
people to commit to giving a presentation for a specific month, confirming that presentation in advance
of the meeting and posting a flyer. It is a Board position. -know that we have presentations scheduled
for rest of this year with a possible exception in October,
but need to have these booked for advance announcements and publication.

1. Acknowledged new faces:

Welcome new member Ann Wilson – watercolor

Introduced other new members: Siona Wilbur -watercolors, Sandy Mullins – photography

2. Secretary Report- Vallee Johnson

Motion was made, 2nded and approved to accept on-line minutes of last meeting -copies were available

3. Treasurers Report: Dave Johnson

a. July Beg. Bal. $1005.35 income $913.93, expenses $215.64, End Bal. $1703.64

Motion made, 2nded and approved to accept Treasurer's Report.

b. Treasurer’s Position Explanation- Gary: Right now fairly simple – just keep track & enter records into our on-line Quickbooks accounting system, keep copy of receipts, & write checks that need 2nd authorized signature.

It will become more complicated as we get our grants with special accounting required for each grant.
We need to fill remaining term, but also want to let you know it will become somewhat more complicated

c. Treasurer nominations and election:

-Jim nominates Eva. Eva said as last resort, she could do, but.. (Note: during break Eva reminded Vallee she can't be Treasurer, as she can only attend every other meeting due to conflicting schedule with other organization.)

d. Will have nominations for Vice President & Secretary in September

Please consider helping A.C.E. with your nomination for either of these positions.
Gary reminds that Terence will finish his term through Dec. but will not run again as he is otherwise committed.
Vallee's (2 plus yrs.) term is up as secretary in Dec. and not sure if she'll run again.

4. Events/Publicists Report. Dave

a. Farmer’s Market Report & Sign up:

It is going well, but Dave requested artists sign up and help as he and Vallee are having to do most of the work
involved and are getting really tired. We need someone for this coming weekend, the 14th.
Passed around sign up sheet and requested people please sign up for these.

Dave requested members to sign up for the open dates and commit to help with the Community (Kid's) Craft Corner.

Dave brought up that we may have to reconsider how we do the market next year.
May have to just get artists to commit to hours without a fee and pay a commission to A.C.E.,
but we must complete this year as we started. It is an $8.00 fee to artist for half booth.

Dave requests that members understand the importance of our being at the Market as our visual presence in Erie.
It has gained us many new leads, new members and supporters in town with their names added to our petition that
the citizens of Erie want the ARTS to have a home in Erie.

Eva: Are we promoting ourselves or A.C.E. at these events?
I did one last year and didn't make any money or get any business out of it.

Dave: It is for both.

Gary: There are 3 points I'd like to make about this:
a. We voted back in April to continue doing the market and made a commitment to do this year.
b. Leads for business.. It is exposure whether or not you make any sales
c. Part of our mission as a Non-profit is to do outreach in our community which means more than just getting
people to sign up on our email list or petition.
This year having the art activity for the community each week is our most active outreach at this point.

Jim: Organization maybe could advertise more about the artists being there all morning, not just carrots..
may bring more art minded traffic down for the artists.

Dave: I have been having that discussion with Farmers Market person that the arts should be included in their ads.

Vallee: Where should we advertise this?
Maryanne: Can you compare flyers to advertising costs?
Kari: Did 3 subdivisions through “home based delivery.”. I had no response.
Gary: We are saturated with flyers. We could try an ad.
Vallee : If we can try just one, which do you all recommend?
-Group suggests Colorado Hometown News.

b. A.C.E. 2nd Birthday Celebration will be held at the Spirit of Flight Center ~ “Flight Day
Aug. 14th 10:00-4:00 We'll have a Birthday cake. Come and help us celebrate.

We will have our promotional material, Studio Tour Brochures, etc.. at a booth there
-Artists signed up to bring a couple of their pieces to show/sell for a 2 hours each to help man the booth during the event.
Free to our A.C.E. Artists ~ 4000 to 5000 expected and great opportunity to us to have a new business partner
in the Spirit of Flight Center and encourage people to come to our Wine & Cheese Reception there Sept.10th for our Studio Tour.

Vallee: It is free to our artists, but want to point out that The Flight Center is also a non-profit and this is their big fundraiser
 and it's only a $5.00 donation if you can give it.

c. Friends of Erie Airport – Aug. 21st

A.C.E. will pay $30.00 for a vendors booth “Erie Air Fair” 7:30-4:00pm
30 parachute jumpers, kids ride, airplanes doing flyovers every 30 minutes.. expect 2000-4000 people to attend.

We will have our promotional material, Studio Tour Brochures, etc.. at our booth
-Artists signed up to bring some of their artworks to show for a couple of hours while manning the booth during the event.

If you want your own $30.00 booth, let me know tonight because booth space is limited  and I'm confirming tomorrow.

d. Studio Tour & Reception Report:

There will be an Events meeting Aug.12th 6:30 at Johnson Residence.
-anyone with Studio or interested in helping with our events should come:
-We will be discussing details of Studio Tour and other upcoming events.

Other notices:  We are meeting with Goddard School Aug.25th,
and Sept. 15th Erie Tiger Fest to get our Erie children involved with A.C.E. and more..

Sept. 18th is Biscuit Day and kicks off our Studio Tour,

Sept. 25th – 2:00-4:00 Erie History Fair ~miners theme

Eva: This is a lot of stuff will this be available somewhere?
Vallee: Most of this is in current A.C.E. Reporter.

Dave: Studio Tour Press Release is coming out.

Sept.10th from 7:00-9:00pm will be our Preview Reception will be at the Spirit of Flight Center
This will be a free Wine & Cheese Reception open to the public to show samples of the artworks
for the artists that will be participating in the tour.

e. A.C.E. Booth at Harvest Fest Oct. 2nd will be discussed at next meeting Sept.

f. “Art After Dark” -will also be discussed further at next meeting in Sept.
We are proposing to have “Art Receptions” at different members studios once a month or bi-monthly.
Artists pay small fee ($25.00 suggested) to A.C.E. to be featured in A.C.E. reporter and on-line.

g. Vallee- Art Night Out -Aug.20th in Lafayette 6:00-9:30pm  
~ Morrells Printing is looking for more artists to participate

Sandy V.: Requests Studio Tour brochures to hand out at Morrells.

Vallee to notify people by email when brochures are in.

~ Lafayette Senior Center’s Art Show Awards Reception is also being held same evening
 during Art Night Out at Festival Plaza on Public Road – some members have works in that.

5. Building Report – Gary

a. Building discussion – Gary presented slideshow of the facts about the old Children's Library Building
and the problems we need addressed/changed with the current lease proposed by the Town of Erie on this property at 625 Pierce St.

"History: We have been after the Town of Erie to get us a building for the arts for almost 2 years.
I wrote a letter to the Town of Erie at that time.
2 months ago the Town made us an offer on the Lorraine David's Children Library
and we are at the point that we need a decision from membership as to whether to proceed in these negotiations.

It's the old Boetcher Cottage brought in here from Pearl St. Boulder – donated to Children's Library Association.
It is 900 sq.ft. (2 rooms with a very large restroom) inside raw brick and drywall.
It is handicap accessible, forced air gas heat, and A/C unit out back from reports may not work.
Sits on 2 lots with 50 foot of frontage.
It is a block off Briggs in area that is mixed residential and commercial that will most likely become commercial.
Street parking adequate. Good relationship to downtown.
Town of Erie owns the land and the building. There is another building on the back of the property currently housing
and owned by the Food Bank as far as we can tell. The Town recently purchased the building for $15,000.
The Town has offered us a 3 year lease for $250.00 a month.
Our counter offer that we believe would be acceptable to the town would be a 3 year lease with a 2 year option.
We propose that if we pay the rent for 5 years the building is ours and would hope the Town would either give us the land
or sell it to us at the same lease and believe that would be acceptable to the Town.

$250.00 a month lease,  without a doubt is the lowest amount of lease that the current Board of Trustees will support.
We had hopes that it would be less than that or they would give it to us, but $250. a month is their offer and I don't think we will get any change on that.
We've asked for and most likely will get some rent release to start up the operation.
I requested 6 month suspension of rent. Don't know what they might be willing to give us on this.

I have made a projected operating budget that does not include any capital improvements or repairs.
We're hoping that we don't have any repairs. We would have to have an inspection before we'd sign the lease
which would mean we'd have to have power and water turned on by the city in order to have that inspection done.

In this break even estimate the expenses are either actual costs based on bids or very high, which I call conservative, estimates of what things would cost.
There is no labor cost included and the coalition would need volunteers to set-up and staff the operation.

Our fixed costs $3000 a year rent or $250. a month, water at $35.00, trash removal at $20.00, energy at $350.00 a month is very conservative.
Insurance ($1 million on liability and contents) $60.00 a mo.
Bringing the total to $715.00 a month. If we can shave more off energy cost, trash, etc.. it would be good,
but that $715.00 is something you need to think about.

To cover that.. I have projected sales of $287. (that gives us the needed $115. at 40% commission),
Fundraising $200 a month,
Donations $300.00 a month
and events we need to bring in at least $1200 a year, or $100. a month to break even.

Sandy V.: What are we selling for that $287.00?

Gary: That would be to make our percentage on sales of art through the building.
If we had “outside” artists they would have to pay more commission.
It doesn't include anything that the organization itself might sell. For instance if we were to get a stock of books to sell.
I'm sure we'd sell more than this, but its a very conservative figure.

Eva: Is there a previous public service bill to give us the average?
Gary: No, it has not been turned on in 3 years.

It's an art gallery and we already know that swamp coolers and art don't mix.
We've had some art damaged by the humidity at the Community Center so we would have to fire up the A/C and that's why I'm estimating high.”

As far as fundraising? It's a stretch from where we are now, but Robb, do you think that's a do-able number?

Robb: I think it is. We just have to decide if that's what we're going to do.

Gary: and donations? We have had several hundred, but would need to get more and with a building maybe able to get more.

Gary: Events? We're pretty much on target to make about $1200 this year on events.
Probably a little short of that this year. Had some events where we didn't make anything.

Problems with lease and lease changes we are requesting from Town:

#1.We want a 3 year with 2 year extension at our option. We can bail on that lease with 90 days notice.

#2.Rent waiver is something we'd like to see for 3- 6 months.

#3.Want Town to certify building is habitable, in good working condition & free of contamination and infestations.
We think there might be bats.

#4.We want them to waive the $500.00 security deposit. If anything, we will be fixing the place up.
We will request Town to drop security deposit.

#5.City wants right to terminate our lease if they decide to sell the property.
Mayor says that clause in lease is unfair and he would vote against such an item.

#6.Want the Town's right to cancel to be limited to only for cause reasons and not just at discretion of Town.

#7.We want the right to sublease building for other purposes, such as events or to other organizations as needed.
Current wording we would require city's permission anytime we wanted to do that.
Asking for 30 days per incident max or would like blanket clause to sublease.

#8.Rent to own. Suggested by council members so I believe they are willing to look at this.
If we paid $250 for 5 years we would own the thing.
This would put city back in position they were in when they bought it
and we would want the city to agree to sell us the land or give it to us at that point.

Gary: This brings everyone up to speed on where we stand on the building and the proposed issues with the current lease.

Question from Lola: Would this give us the privilege of applying for grants?

Gary: Yes, there are many grants that you have to have a building to get.
Grants want to look at an asset. No grants he can find that help you get a building.
If we have lease
with option to own on building we have an asset.


Gary presented Pros to moving forward in pursuit of Children's Library Building-

-My belief is that $250 is a very very low rent.
If any properties on Briggs St. were rented to us we'd be looking at 8 to 10 times that on monthly lease basis

-We can own it for the cost of the lease.
$15,000 to own any building in town is pretty cheap especially if we can get some kind of guarantee on the land too.

-I look at this deal as not an either/or (either we get this one or we wait for something else.)
 This one is cheap enough that if we get another opportunity in the future we could still go for that too.

-Also we would have the right to cancel within 90 days notice and I think that gives us a lot of flexibility.

-Cost of operation is low. Rent is around the utilities or less.

-$8.00 per sq. ft. retail space is amazing in this current market.
The same square footage would cost us $600 a month and any other building up to 2000 sq. ft would be way beyond us.

-I also look at the utilities being lower than I projected

-It's a place to start. We got to start somewhere.
We need 3D space to display for our group. Plenty venues around for 2D art, but not for 3D art.

-We need a “Home.”

-I am very much for this building.”


Vallee: When is the likelihood that we'll get a response from the Town on these points?

Gary: We won't likely get one until we say yeah or nay at this point.
They are not going to negotiate anymore with us unless we have something to tell them.

Terence: What are you thinking about on these sales?  Not thinking about being open 6 days a week are you?

Gary: No, we're talking about at this point being open on the weekend and maybe one weekday, maybe Thursday through Sunday.
Common for a lot of small galleries. Minimum to even say you're open you have to be open 3 or 4 days a week.

Lola: When you talk about sublease, does that include if a member of our group would like to give a class in there?

Gary: It doesn't cover that really. As members we can do anything we wanted.
Let's say someone wanted to have a wedding in the building. That would be a sublease.
Or somebody wants to have a dinner there. That's a sublease.
If we're going to let other organizations use it “gratis” it's not a sublease.
If it's something they want to do that we don't want to do gratis that would be a sublease.
Technically, do I think the city is going to want to know everytime we do that? No, but that is the way it reads.

Maryanne: If I'm in there on a Sunday for instance and someone comes in to buy a piece of art, then 40% is taken by the organization?
Everyone that runs it is a volunteer?

Gary: We as a group can't get involved in sales, but can collect fees. Going rate is 50%.

Vallee: Actual percentage would have to be voted in by the members.

Lola: Wouldn't it be a benefit to have some sort of option for the land after the building lease is fulfilled?

Gary: That is what we are asking for.

Dave presented Cons to moving forward in pursuit of Children's Library Building-

-900 square feet is pretty small to adequately take care of our members

-Are we going to get enough volunteers to work the building?

-Is the Town going to allow additional signage?

-We're off the beaten path

-We're in the middle of the block

-No parking

-Mixed residential - how are the residents going to feel about the comings and goings?

-Originally we were expecting to get this building donated to us,
but that was the old Board and that's all been flip-flopped around thanks to our town administrator.

-What if we have repairs? That's not even included in this proposal.

-6 months? I'd like to see a year free rent to get established and begin to get traffic.

-I think 40% on commission on sales is too high.

-On events, we're really pushing it at $1200 a year

-Working condition of building? Are they going to bring it to market ready condition?

-Security deposit must be waived.

-Will they let us do our 90 day clause to break the lease?

-Don't like the idea of subleasing the building for 30 days because of our stuff in building.

Gary: I wasn't talking about actually subleasing it for 30 days, but I want the blanket right to be able to do so if we wanted to.

Lola: If we did sublease it, shouldn't some member be there to oversee that our things are protected.

Gary: We definitely would have to be overseeing it. No sublease gets us “off the hook.”

Dave continues:

-Specify the maintenance of the building. We don't know what condition it is actually in.

-900 sq.ft. is not going to be adequate.

-Will we get the people to manage the building?

Gary: In rebuttal, we might have to have a vote of general membership on what the commission for sale would be,
but I modeled what I proposed on the Arts and Craft Coop in Boulder.
Members pay 40%, non-members pay 50%.
Members are also required to work X number of hours and invest certain amounts of money in it.

John G: When you're starting out that seems to be a big chunk.

Gary: I would rather sell a piece of work for $800 and collect nearly $500 than to have sold it for $400.00.

John: I still think it should be put to a vote.

Gary: We don't need a vote on the commission amount today,
but if you make the commission 25% then you have to sell $600 dollars worth of stuff a month, etc..

Sandy V: What do you think commission should be, John?

John G: There are a lot of things about that building that are unknown factors: the condition of the building is not known.
Reports from people who have worked in it are that it's sweltering hot in summer and freezing cold in winter.
That may be because it's only brick walls without insulation.

Sandy V: What do you think commission should be, Dave?

Dave: I'm thinking more reasonable would be 30%.

Sandy V: Let's say as an artist I only had to pay 20% commission,
but I would also have to pay $35.00 per month out of pocket to pay for lights, electric, etc.. to keep the gallery going.
I would rather pay the higher commission than out of pocket too.
This is difficult. If we do a vote tonight we need to do it with written ballots.

Terence: I'm in 2 other galleries. One in Denver takes 50% and I pay additional $150.00 a month out of pocket.
40% sounds good to keep from having to pay out of pocket, but this is not the question before us tonight.

Gary: It's not. Discussion about commission is putting the cart before the horse.

Gary: At the last meeting of the Town, I told them that if they would meet our conditions that we would bring it to a vote at this meeting.
Now I have assurances from committee members that they are willing to meet most of these,
but its a democracy and they will have to vote on these.

Jim: If we vote on this tonight, what do expect from all the members?

Gary: Actually at this time a vote yeah or nay is all we expect.
Because we have to go back to the city and see if they will meet our requests and get a lease in front of us,
but there is no point in moving forward if we are not willing to sign this lease if all these requests are met.

John G: Can we really live with the terms of this lease? It seems their demands are strenuous on us with nothing in return from them.

Gary: I have something to say about that. In my former life as a non working artist making real money in the real world,
I was in charge of leases, commercial leases for oil companies and for convenience stores
and this lease is no more strenuous than any number of leases with the exception that allows them to sell out from under us.

Two points about lease that are not standard – their right to cancel with no reason and their right to sell property without concern for our lease.
Otherwise everything in lease reasonably standard.

We can cancel with 90 days notice at anytime,
but unfortunately it's also in there that the city can cancel at anytime with 90 days notice
and they ought to have good reason.

Lola: What would protect us if we go for this lease and pay all this money for it
and then they decide they don't want to give it to us before the 5 years is up.

Gary: Actually at this point in the lease there is nothing to protect us.
We want a codicil in the lease that does protect us.
Again we're asking for a vote if those several conditions I listed before are met.
In other words the rent to own, right to sublease, town to cancel for cause, security deposit waived and habitability of the building.

Terence: I've worked as general contractor and I would like to get into that building before I make a commitment.

Gary: We've looked at the building and we would not want to sign a lease until we have an inspection and it 's going to be predicated on that.

The lease modifications we are asking for are very important to us. Some of them they will meet. Some they won't, but the basics of it are that we have this offer and need to know what to say to them about it. It's time that Dave and I stopped negotiating with them and have something from the membership.

Vallee: Do we realistically think we can cover the $715 a month?
I'm having trouble getting people to even show up for a few hours on a Saturday morning for the Farmers Market.
I do not want this to become me spending all my time at this building for A.C.E and other A.C.E. Artists aren't showing up.

Sandy: How many members do we have? Vallee: over 50. Sandy: Where are they?

Vallee: Good question. Many are sick or on vacation.
I don't want to get us into something that ends up being Dave and me doing all the work.
Something for you all to consider before you decide you want this is “How much time are you really willing to be involved in it?
Dave and I are not going to do it all. We need other people willing to work it.”

Kari: It's not just time, I could commit to a weekday, but with the economy, who will buy?

Lola: In answer to Vallee's question. If you display you have to commit to so many hours.
Is there a way we can have a first option?

Gary: I just want them not to be able to sell it while our lease is in effect. If they could, we'd need a right to purchase at our agreed $15,000.
Different than “right of first refusal” where they get an offer and we'd have to meet that offer to buy it. We don't want that.

Again, The question before the group tonight is not about how we structure, whether people are going to support it
because I can tell you right now the only way you're going to get into this gallery is you're willing to work some of it.
If not then we're not going to extend the right for you to be there. We're not talking about huge amounts of time here.
Boulder Arts & Craft Coop requires there members to give 60 hours a year and non-members to give 20 hours.

John V: What about property taxes? Gary: There are none. City owns it. We're a non-profit. There are none.

Again, the question tonight is not about how much commission or how we staff it. Though that is all something to think about. It's really simply, can we take this leap or not take this leap at this point. Anytime you start a business you take a leap of faith. There are no guarantees that your market is there or that it's not. McDonald franchises even fail.

Maryanne: It's location, location, location.

Gary: But it's this location we're talking about. We can talk about all the other thousand opportunities that may come along,
but those are not before us at this point.

Jim: I guess I personally have never heard of a better offer for a building. What the heck? Let's try it for 90 days.

f. Motion made that we continue with the negotiations and if the conditions that we have outlined here tonight be met, we can conclude those negotiations.

2nded by several from floor.

Terence: Does that imply that you will then bring that to the group for final ratification.
Gary: We will put that proviso in there.

Robb: Again.. what protection do we have that they not take it back. We need to be guaranteed that we will own the building.

Gary: That is one of the conditions we have to have met. If we pay rent for 5 years we own it.

Gary: Was there a 2nd?

Vallee: Yes.

Ballots counted: 13 yes, 6 no

It has been approved that Dave and Gary continue with negotiations
and if the conditions stipulated above are met, they conclude negotiations for the building.

(Note: Question was brought up about having a quorum..
and explained that according to our bylaws, a quorum is constituted by the average member attendance at our monthly meetings.)

7.There was no New or Other Business:

8.. Photo Contest: ~ Vallee

- reminded that September submissions will be for the EERIE photo contest..

- went through the 12 entries for July

Congratulations to Jim Avery for his “Backyard Beauties”

10. There were no other announcements:

11. Members Presentations: Gary brought some beautiful Wooden Serving trays he had made.

12. Meeting Adjourned at 9:00pm:


There was No Presentation Given:

We hope to reschedule Maryanne Dascher's, Tie Dye Techniques for a future date.


Respectfully submitted,

Vallee Johnson

Secretary Arts Coalition of Erie