As you may know, NJIVA and Art Pride NJ are advocating for a 70 million dollar ARP relief bill for the arts, S2800/A4233, which will dedicate ARP funds to our creative industries. This bill includes funding for nonprofit and for-profit arts.
The State of New Jersey Governor's team took live testimony on the use of ARP funds on Monday, August 22. They continued to welcome more detailed written testimony. With responses from over 10% of our venues regarding how they are doing financially post-pandemic, we reported to the Governor's team how these funds could help our industry.
You can read the full NJIVA testimony for ARP funding that was submitted to the Governor's Office below:
MEMORANDUM
August 29, 2022
TO: Office of the Governor of New Jersey
FROM: Sara Scully, New Jersey Independent Venue Association, Associate & CEO Hopewell Theater
RE: Use of ARP Funds
The New Jersey Independent Venue Association (NJIVA) is comprised of over twenty five of NJ’s valued performing arts venues, presenters, and promoters. The group formed in response to growing needs during the pandemic for live performing arts venues.
Independent venues have sustained significant losses year over year since the pandemic began in 2020. Our industry was awarded State support through the Community Stage Grant and Federal Support in the form of the Shuttered Venues Operators Grant (SVOG) to address losses incurred during 2020. Without these funding opportunities, many of our venues may not have survived. However, in 2021, and so far in 2022, our losses have continued to be realized and relief funding has not been immediately available to assist in sustaining the industry. Given this predicament, our independent arts venues are urging the State to continue relief efforts through ARP funding to ensure that the arts industry makes a strong and lasting recovery.
VENUES ARE COMMUNITY & ECONOMIC GENERATORS
Our venues contribute to the overall financial health of their communities. We generate, on average, $12 in revenue for every dollar spent on tickets in our respective communities. This economic value positively impacts local restaurants, the local labor we hire, and the surrounding real estate values that increase because we bring life, character and consumers to town. Indeed, our State’s live venues are also a critical part of the overall New Jersey and US arts ecosystem. We create jobs and income for various sectors that make arts events happen: from talent bookers to attorneys, to the artists themselves who perform on our stages. We each support touring routes, making it possible for artists to perform throughout the State and arts-gig workers to find consistent work in their field.
ARP FUNDING CAN HELP OUR INDUSTRY THRIVE
At the end of June, the FY23 New Jersey State budget allocated $15 million of ARPA funds for “Support of Arts and Creative Placemaking” through the New Jersey Economic Development Authority (NJEDA). Nonprofit and for-profit venues were grateful and thrilled upon learning of this allocation and will certainly look toward this funding for assistance.
However, more help is needed in order to reach the wide range of arts industries in our State, including our live performance venues. Therefore, we, NJIVA are requesting greater support from the State of New Jersey using ARP funds. S2800/A4233 was introduced on 6/6/22 by Senator Vin Gopal calling for $70 million of ARPA funds to support arts and cultural organizations, including for-profit businesses and nonprofit organizations that were negatively impacted by the COVID-19 pandemic. NJIVA is advocating for the passage of this legislation which would give arts and cultural institutions the further boost toward recovering from the long-lasting impact of the pandemic.
2021 INDEPENDENT VENUE PROFIT AND LOSS DATA
SURVEY: NJIVA surveyed its base of 61 NJ venues - both for profit and non-profit - in February 2022 to determine the financial state of NJ's venues in 2021, after they were able to reopen. The survey asked questions regarding ticket and non-ticket income, demographics and labor costs, and received an 18% response rate.
CONCLUSION: Every respondent - which included nonprofit and for-profit organizations - reported an average 67% decrease in overall ticket sales in 2021 vs. 2019 (pre pandemic), despite the average ticket sale price remaining comparable. Around 90% of respondents also reported an average 72% decrease in overall non-ticket revenue and an increase in their no-show rates. This occurred alongside an increase in overall labor costs for venues this past year. While 82% of these respondents received SVOG and 45% received the NJ Community Stage Grant to offset losses in 2020 when they were forced to close, these venues' losses continued in 2021, despite reopening.
2022 INDEPENDENT VENUE PROFIT AND LOSS DATA
NJIVA once again surveyed our 61 venues in August 2022, and received a 10% response rate. 100% of those venues reported that their financial losses have continued; ticket sales are lower and non-ticket revenue is lower than pre-pandemic levels.
A WORD FROM OUR VENUES ACROSS THE STATE - HOW WE ARE DOING:
“Attendance is way down, bands cost twice as much and less bands are touring, and costs have increased significantly (labor, food costs, etc).” – David Gaskill / Owner, Debonair Music Hall, Teaneck, NJ
“Inflation, staffing problems, funding, and uncertainty from concert-goers have definitely persisted and are a major challenge…” – Lee Frankel, President, Crossroads, Garwood, NJ
“CARES has helped and Shuttered Venue money.” – Lee Kaloidis, Operations Director, Mayo Performing Arts Center, Morristown, NJ
“Not good.” – Graham Alexander / CEO,The Vault at Victor Records, Berlin, NJ
“Customers are still wary of returning to shows” - Brad Grossman, Owner, Bananas Comedy Club, Rutherford, NJ
NJIVA’s mission is to unify NJ’s diverse and proudly independent venue owners, operators, and presenters to foster mutual support and resource sharing, and advocate as a unified group for our shared priorities in order to preserve and nurture the ecosystem of independent venues, large and small.
Venues have played a crucial role in the development of NJ’s performing artists for over half a century by nurturing local, national, and international talent, and providing a platform for these artists to build their careers and develop.
NJ’s independent venues - both nonprofit and privately owned - provide thousands of jobs, as well as millions of dollars in salaries, revenues, charitable donations, and taxes. Therefore, it is critical to preserve and nurture the ecosystem of NJ independent venues.
Over twenty-five of NJ’s valued performing arts venues, presenters, and promoters are Associates of NJIVA: 1867 Sanctuary Arts and Culture Center, AM Productions, Anchor Rock Club, ArtPride New Jersey Foundation, Bananas Comedy Club, Bergen Performing Arts Center, Bird and Betty's, Boardwalk Showroom, The Clubhouse of Toms River, Count Basie Center for the Arts, Crossroads, Debonair Music Hall, Hopewell Theater, House of Independents, Hunterdon Media Partnership, K Street Group, Ledge Entertainment, Mayo Performing Arts Center, McCarter Theatre Center, Newark Symphony Hall, The Newton Theatre, Outpost in the Burbs, Palladin Tour & Travel, Roy's Hall, State Theatre New Jersey, and Wellmont Theater.
On behalf of New Jersey’s independent venues - both for profit and non-profit, I thank you for considering this request.
Submitted by:
Sara Scully,
New Jersey Independent Venue Association, Associate & CEO, Hopewell Theater
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