Basque Center News
Growth & Development Expansion Information Update
Membership Meeting
The special membership meeting held on May 17 was well attended and the presentation was made to address the opportunities for expansion and address any concerns from the members in attendance. The following information was presented at the meeting and is reproduced here for your review. (To see video from the evening, please click here.)
Why Do We Need to Expand?
The Basque Center is currently used 213 days a year including 111 days for cultural events and 102 days it is rented. Rentals are a major source of funds for us and in the first four months of this year we have turned down potential income of $23,200 because of conflicting dates or insufficient space. The Boiseko Gazteak dance group currently practices on both floors of the Center, at the Basque Museum and at the Fronton, which is not a very desirable location because of safety and climate considerations. Txantxangorriak and the Oinkaris use the facility almost weekly for practices and other activities. Our membership dinners are extremely crowded and the Mortzilla Dinner and the Sheepherder’s Ball are restricted by the seating available.
A larger facility will allow us to continue to provide adequate space to encourage increased participation of our youth in dancing and other cultural programs. It would also allow us to increase our membership size and make the Mortzilla Dinner and Sheepherders Ball major fundraisers for Euzkaldunak. We could increase rental income by having several events occurring concurrently on multiple levels, renting office and retail space and allowing more activities to occur during weekdays. We could also furnish the space to serve as a “cultural hub” for future partnerships with the Basque Museum, Boise State University and other organizations. With costs continually rising, there is no better time than now to look at this potential expansion concept.
Project Costs
The estimated cost of this expansion concept is shown in today’s dollars and is not adjusted for inflationary increases.
Bricks and Mortar Cost = $5,231,500 ($125/Sq Ft)
Right-of-Way Purchase = $ 132,000
Permits, fees, soft costs = $ 661,900
Furniture, fixtures, equip = $ 150,000
Total Project Budget Cost = $6,175,400
Fundraising
Since we do not normally generate any significant amount of profit from our operations, we are not in a position to borrow money from a financial institution because we cannot service the debt from our profits. Therefore, funds required for this project will have to come from donations, grants and contributions. Most fund raising projects generate at least 75-80% of their funds from individual contributions and the remainder from grants and corporate contributions.
If we assume we will be able to raise 20% of the needed funds from major contributors and outside sources, our members could possibly contribute the remaining $5 million by pledging $150 per month for four years, or a total of $7,100 per household (not member). This would be an average amount since larger and smaller amounts would be contributed. Remember, we now have a 501(c)(3) organization so all contributions would be 100% deductible for the donor. Again, these numbers are not fixed as the project scope may change or we may collect more funds from outside contributors. The membership would not be required to contribute (an assessment to each member would not occur), but rather each member would be asked to contribute what they feel comfortable with.
A thorough exploration of fundraising has not been undertaken since we have not yet received the members’ approval to proceed. If approval is given, we will establish an official fundraising committee to set up the program and to begin generating funds.
Operating Costs
In 2007, Euzkaldunak showed a net profit of approximately $38,000 (which does not include interest income). An example was shown keeping income at the same level as 2007 but increased operating costs associated with a new, larger Basque Center. This scenario shows an annual loss of approximately $28,000.
Another scenario was created showing bar income increasing by 30% in the new facility, rental income doubling and associated operating costs increasing accordingly with the increased use, with the addition of a full-time professional business manager. This scenario shows an annual profit of approximately $2,000.
Questions and Comments from Members
What do we do about parking?
The parking district in which the Basque Center is located does not require additional parking regardless of the type of expansion. However, adjacent property owners have parking structures in their planned developments which our membership could use at the going parking rates and the CCDC Old Boise-Eastside Master Plan 2004 does call for three additional parking structures within three blocks of the Center.
What will be the increased seating at dinners?
Our current projections with the proposed design will increase seating in the main hall up to 30%.
Will ballots be mailed to each household or each member?
Each paid member will be sent a ballot.
What constitutes a quorum and a majority?
A quorum will be a minimum of 50 votes. A majority will be 50% plus one (1) of the ballots returned, assuming at least 50 ballots are returned.
With fundraising, what does “substantial amount” of funds raise mean with regard to moving forward?
Substantial will have to be determined by the Euzkaldunak Board of Directors and the General Membership at the proper time.
Will we be able to continue activities during the construction period?
We will find temporary locations, which may have to be leased, to continue all our activities including dinners and dance practices and will make every attempt to operate our bar from a temporary site.
Would a new facility be available for Ikastola?
The intent would be to design and furnish the new facility to encourage participation from all Basque organizations.
Could we get a property tax exemption?
We would be able to get partial relief from property taxes for the portion of the building that does not generate non-member income, i.e. those areas used exclusively by the membership…the card room and the basement.
What percent of the fundraising will come from members?
That is difficult to say since we do not know yet how much can be raised from grants, corporations or individual non-members.
Will we consider purchasing other adjacent property if it becomes available?
We have made contact with all nearby property owners and will look seriously at any possibilities that may arise in the future.
Will dues increase as a result of this proposed expansion?
This proposal does not include any dues increase. Any increase will have to be made by the Board and the members.
Mayor Dave Bieter
The Mayor commended our organization for even considering such an ambitious project and stated that the City would do all it could to help bring such an improvement to the downtown community. He also suggested that he would propose a resolution to the City Council pledging support from the City for the proposed expansion.
Website
Please click here for a video of the G&D Committee presentation and members’ questions.
Future Question and Answer Sessions regarding the Basque Center Expansion
The Euzkaldunak Growth and Development Committee will be holding a series of question and answer sessions throughout the months of June and July. These informal meetings are to provide a format for Euzkaldunak members to be able to receive additional information, ask questions and voice concerns that they have in regards to the potential expansion of the Basque Center. All meetings will occur at the Basque Center during the following dates and times.
Wednesday, June 11 from 6:00 pm – 8:00 pm
Thursday, June 26 from 6:00 pm – 8:00 pm
Sunday, July 13 from 2:00 pm – 4:00 pm
If you are unable to attend these meetings, but have questions or concerns that you would like to express, you can contact the following Growth and Development Committee Members.
Jack Olson at 321-8195
Jeremy Malone at 322-8982
Louie Uranga at 342-8931
Steve Achabal at 385-9334
“Because of them, we are. Because of us, they will be.” |
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