Few arts institutions are able to own their own facilities and control their financial futures, but our innovative partnership with East Bay venture philanthropists establishes a new ownership model for non-profit organizations. The Museum and investors are equal financial partners in the 520 South First Limited Liability Corporation (LLC), which owns and leases the building back to the Museum. The Museum has a ten-year lease with an option to buy out the investors with funds raised through the Capstone Campaign. This allows the Museum to build program and organizational capacity while reducing facility expenses over time. Phase II fundraising, totaling $4.3 million, will retire the mortgage, buy out investors, complete the full remodeling plan and seed an endowment for annual operations with $1 million.
The Museum encourages pledges and letter-of-intent commitments that may be paid over a period of one to five years. Invest in an arts institution that honors the world’s rich and diverse textile traditions, and celebrates the innovative work of contemporary textile artists. Make a pledge to the Capstone Campaign today.
Costs to purchase the property and building, and complete new construction and renovation include:
| Direct Project Costs |
| Land and Building Purchase | $1,400,000 |
| Renovation and Remodeling | 1,892,000 |
| Fixtures, Furnishings and Equipment | 161,150 |
| Architectural Design, Engineering and Permits | 364,435 |
| Contingencies and Escalation | 172,257 |
| Total Direct Costs: | $3,989,842 |
| Indirect Project Costs |
| Start Up Costs | 53,000 |
| Annual Fund Replacement | 125,000 |
| Development Costs | 283,010 |
| Retire Mortgage Financing | 1,915,098 |
| Pledge Shrinkage Allowance | 274,050 |
| Total Indirect Costs: | $2,650,158 |
| Endowment | $1,000,000 |
| Less Credits from Phase-I Fundraising | ($3,340,000) |
| Overall Phase-II Capital Development Program Goal: | $4,300,000 |
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