INTRODUCTION AND OVERVIEW [1]
GET TO WORK [2]
FORMING A TEAM [3]
ON LOCATION [4]
FINANCEPrinter Friendly [7] | Further Reading [8] | Sources [9]
Photo courtesy of Zootown Community Arts Center.
If you have downloaded the flowchart provided in Section 2.1 [2] which captures the key elements of Artist Space Development, then you may have noted the large area of work assigned to determining a project's feasibility. Among those key tasks is creating financial pro-forma [10]. Determining whether to carry out a facility project; planning and refining the project's programming; applying for funding (whether for loans, grants or equity investments)-- are all reasons pro-forma are critical tools in the ASD process. Of course, a full feasibility report would go beyond the financials to further include information on the: property itself; development team; proposed project; and the form of ownership for the property (e.g. cooperative, condominium, rental, etc.)
Financial pro-forma for artist space are similar to most development projects. The developer needs to prepare a preliminary financial pro-forma from the very beginning of the project and consider financial feasibility:
LINC grantee, ArtistLink has provided a sample pro-forma [10] on its own website, which provides a real-world sense of how financial projections are organized. Among the line items that pro formas include are:
Total Development Costs
Revenue
Expenses
Funding
It is important to note that your preliminary financial pro-forma will be modified constantly as you acquire updated information about the property, tenants, and financing sources. As a living document and planning tool, the financial pro-forma is not only the work of financial specialist or project manager, but a joint effort of the entire development team.
Hecht, Bennett L. Developing Affordable Housing: A Practical Guide for Nonprofit Organizations: Chapters 4, 5 and 12. New York: Wiley, 1999.
“The Development Pro-Forma.” ArtistLink. Date of Access: Oct 30, 2009 http://www.artistlink.org/?q=spacetoolbox/fordevelopers/financingspace/proformas [11]
Hecht, Bennett L. Developing Affordable Housing: A Practical Guide for Nonprofit Organizations. New York: Wiley, 1999.
Loft Studio Pro-Forma. Malden, MA. Date of Access: Oct 30, 2009. http://www.artistlink.org/files/Malden_Loft___Studio_Plan_April_2005.xls [10]
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Links:
[1] http://www.lincnet.net/artist-space/guidebook/11-how-use-guidebook
[2] http://www.lincnet.net/artist-space/guidebook/21-flowchart-artist-space-development-process
[3] http://www.lincnet.net/artist-space/guidebook/31-core-project-team
[4] http://www.lincnet.net/artist-space/guidebook/41-preparing-site-search
[5] http://www.lincnet.net/artist-space/guidebook/52-funding-resources
[6] http://www.lincnet.net/artist-space/guidebook/53-financing-strategies
[7] http://www.lincnet.net/print/1187
[8] http://www.lincnet.net/artist-space/guidebook/51-proformafinancial-feasibility#_fr1
[9] http://www.lincnet.net/artist-space/guidebook/51-proformafinancial-feasibility#_r1
[10] http://www.artistlink.org/files/Malden_Loft___Studio_Plan_April_2005.xls
[11] http://www.artistlink.org/?q=spacetoolbox/fordevelopers/financingspace/proformas
[12] http://www.lincnet.net/sites/all/files/ZOO_01.jpg