CITY COUNCIL STAFF REPORT
December 19, 2023 {{section.number}}g
REVIEW AND RECEIVE THE AMERICANS FOR THE ARTS ARTS & ECONOMIC PROSPERITY 6 (AEP6) REPORT
RECOMMENDATION:
Receive the Americans for the Arts Arts & Economic Prosperity 6 (AEP6) Report from the Cultural Arts Commission and provide direction to Cultural Arts Commission.
BACKGROUND:
The recently published Arts & Economic Prosperity 6 (AEP6) report, conducted by Americans for the Arts, a leading nonprofit organization in advancing the arts and arts education, serves as a comprehensive economic and social impact study of the nation's nonprofit arts and culture industry. The full report is available online at AEP6.AmericansForTheArts.org.
This study, conducted every five years, highlights the positive correlation between investing in arts and culture and strengthening our economy, resulting in more vibrant and livable communities. Coronado conducted similar local studies in 2013 and 2015 but participated for the first time in this national study. The AEP6 findings provide a more comprehensive evaluation of the impact of arts and culture and the results are recognized nationally.
The results of the Arts & Economic Prosperity Survey make clear that arts and culture organizations, programs, events, and activities are powerful catalysts for economic prosperity in a community. Despite the obstacles presented by the COVID-19 pandemic, the arts have played a pivotal role in economic rejuvenation, fostering community cohesion, and stimulating local economies.
The City of San Diego collaborated with six San Diego County municipalities and two cultural districts and sponsored the umbrella study fee of $9,000. The cities that participated along with Coronado were Carlsbad, Encinitas, Escondido, National City, Oceanside and San Diego as well as the Balboa and Oceanside Cultural Districts. The Coronado City Council approved participation in the study on August 17, 2021 and the supplemental fee of $2,550 to produce summary results specifically for Coronado.
In Coronado, 29 out of 30 eligible nonprofit arts and culture organizations submitted their financial and attendance information necessary for the AEP6 analysis achieving an impressive overall participation rate of 96.7%. In addition, audience surveys, conducted at 16 different arts and culture events throughout the community by Arts Commissioners and volunteers further contributed to the study results for Coronado.
ANALYSIS:
The AEP6 provides a broad perspective, revealing that nationally America's nonprofit arts and culture sector is a $151.7 billion industry, supporting 2.6 million jobs and generating $29.1 billion in government revenue. The AEP6 findings also reveal that San Diego County's nonprofit arts and culture sector is a $1.3 billion industry, supporting 19,771 jobs and generating $320,693,871 in local, state, and federal government revenue.
Specifically in Coronado, the nonprofit arts and culture industry contributed $39.2 million to the local economy in 2022. Local economic activity was measured by $13.9 million in spending by nonprofit organizations and $25.3 million in event-related spending by audiences, supporting 616 jobs and generating $10.3 million in government revenue. Notably, audience surveys showed that 40% of local arts audiences are Coronado residents, 46% come from within San Diego County, and only 14% are from outside the County. (Attachments 1 and 2) The study also highlights the economic impact of arts events in Coronado, with local attendees spending an average of $36.86 (in addition to ticket costs) compared to non-local attendees who spend an average of $98.78. This diverse mix of attendees enables the quantity and quality of art events in Coronado that are offered throughout the year, emphasizing the importance of both local and non-local support.
The study not only quantifies the economic impact of the arts in Coronado but also highlights the significant level of volunteer support. In 2022, over 2000 volunteers donated over 85,000 hours, valued at $3.2 million to Coronado nonprofit organizations. This volunteer support is a crucial element that binds our community together, making Coronado a great place to live.
Further analysis of the AEP results confirms the health and growth of our nonprofit arts sector, showcasing its substantial contribution to the local economy and community fabric. The community's active engagement, both in attendance and volunteering, underscores the positive impact of the arts. The arts not only attract people from outside Coronado, supporting local businesses, they provide diverse arts programming to our residents and have high levels of support from our residents demonstrated by the number of volunteers and hours donated as well as high public opinion regarding local arts nonprofits and events.
With a population of fewer than 50,000, Coronado fits into Cohort A of the study. Out of 43 communities in this group there were only two other California communities: Laguna Beach (pop. 22,991) and City of West Hollywood (pop. 36,854). Laguna Beach has total industry expenditures of over $88.3M compared to Coronado’s $39.2M. Laguna Beach has a major art event every summer in the “Pageant of the Masters” that runs approximately eight full weeks and attracts more than a quarter million people each year. West Hollywood’s total industry expenditures were $12.4 million. The Cultural Arts Commission analyzed the eight Cohort A cities with spending over $12 million. In most cases, like Coronado the cities have special events or recreational amenities that attract large audiences that impact their study numbers (Attachment 3).
Key challenges identified through collaboration with participating arts partners include the need for affordable and quality venues for performing arts organizations and performances. Continued organizational support is needed for both new and established nonprofits, with an emphasis on board development, identifying and securing grant sources and marketing. Since its inception the Cultural Arts Commission has provided support with grant assistance and marketing through several grant writing instructional programs, a weekly e-mail “Five on Friday” highlighting local arts events as well as collaborating on a Coronado Calendar slated for a community-wide launch in 2024. The Commission is exploring opportunities to work with our nonprofits to strengthen their boards and membership as well as working to support venue development for future programming. The Commission will bring forward new goals and initiatives based on the AEP6 findings to the City Council in spring of 2024.
In conclusion, local nonprofit arts and culture organizations keep arts spending within the community, and despite the challenges posed by the COVID-19 pandemic, play a key role in economic development and nurture community identity. Coronado's investment in the arts not only significantly contributes to the local economy but also fosters arts and culture.
FISCAL IMPACT:
The cost of the study for Coronado was $2,400, and was paid in March of 2022 from the Cultural Accounts Account 15053000-80030. All survey and organizational data was gathered by Cultural Arts Commissioners and volunteers.
ALTERNATIVE:
The Council may choose to take different action on this report.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Not a project as defined under CEQA.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. AEP6 Study Summary – County of San Diego Results
2. AEP6 Study Summary – City of Coronado Results
3. AEP6 Cohort A Comparison Communities
Submitted By: City Manager's Office / Kelly Purvis