FEASIBILITY_STUDY , item 14. PDF 1 MB - Meetings, agendas and ...

A feasibility study prepared for the Black Box TrustNovember 2011The growing reputation of Belfast as a music city suggests that there will be increaseddemand for music venues across the city.6.3 ConstraintsThe constraints facing the future operation of the Black Box include issues of public funding,temporary set-up, lease and usage of the building, venue and location.6.3.1 Public fundsThe sources of public funding that the Black Box has received to date are unlikely to be soreadily available as beforeDuring an era of public austerity, the Black Box must apply forfunding through appropriate funding channels provided by the ACNI, BCC and DSD, as anyother arts and culture organisation.Public spending cuts have significantly curtailed organisational and departmental budgets, thusincreasing the competition between artistic and cultural groups for limited pots of money asflagship projects are prioritised. Capital budgets have been particularly restricted andtherefore, it is unlikely the building of the Black Box would be purchased by any public sectororganisation. In addition, the level of funding previously provided by each key stakeholder maynot be matched in the future provision of funds.Furthermore, there is significant urgency on securing public funds for the continued operationof the venue as its current funding is based on it operating to the end of March 2012.6.3.2 Private/bank fundingWith the Black Box not making any profits during the first four years of its existence and asignificant loss in 2008/09 of approximately £45,500, creating a substantial bank overdraft, itconstrains its development and potential for investment.For these reasons, it is unlikely that the Black Box would succeed in securing private sectorinvestment or any debt finance from the bank until its overdraft is cleared or seen to beingreduced.6.3.3 Temporary set-upThe Black Box was set up as a temporary venue to address the critical lack of performancespace in the Cathedral Quarter in April 2006, with the aim of building audiences in the area untilthe arrival of the planned MAC was operational. While it has created its own unique presenceand has become accepted as a key element of the Cathedral Quarter, there is still a perceptionthat it is threatened by the opening of the MAC. In our view this is not a real threat, as the MACis a different scale and type of venue.6.3.4 Lease and nature of buildingThe Black Box Management Committee met with the landlord of the building to review andnegotiate the terms of lease of the building, currently equating to £70,000 per annum.Unfortunately there was no agreement reached in terms of lowering the cost of the rent.44