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HomeMy WebLinkAbout05-15-19-04/Acknowledging Arts Grant/40,000/ Indiana Artisan, Inc RESOLUTION NO.BPW 05-15-19-04 RESOLUTION OF THE CITY OF CARMEL BOARD OF PUBLIC WORKS AND SAFETY ACKNOWLEDGING ARTS GRANT WHEREAS, pursuant to Indiana Code 36-1-4-7, the City of Carmel, Indiana ("City"), is authorized to enter into contracts;and WHEREAS,pursuant to Indiana Code 36-4-5-3,the City's mayor may enter into contracts on behalf of the City;and WHEREAS, pursuant to his authority under Indiana law, the City's mayor, the Honorable James C. Brainard,has caused to be signed the Arts Grant attached hereto as Exhibit A(the"Contract");and WHEREAS, Mayor Brainard now wishes to present the contract to the City's Board of Public Works and Safety for it to be publicly acknowledged,filed in the Clerk-Treasurer's Office,and made available to the public for review. NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Board of Public Works and Safety as follows: 1.The foregoing Recitals are incorporated herein by this reference. 2.The receipt of the Contract is hereby acknowledged. 3.The Contract shall be promptly filed in the office of the Clerk-Treasurer and thereafter made available to the public for review. SO RESOLVED this /65 day of ,2019. CITY OF CARMEL,INDIANA By and through its Board of Public Works and Safety BY: James Brainard,Presiding Officer q : ry Burke emb- Date: )S 1 f Lori S.W{tson, e 'r� Date: 119 ATTEST Chris ' erPauley,Clerk-Tr surer / // Date: S:\E Bass\My Documents\BPW-Resolut ons\20191Aclmpwledge Ms Grant Indiana Artisan,inc..dOc5nJa2019 2:13 PM 4/ OF Cq9� ! �� \,,JAO ik OMO' /NDIANp' ARTS GRANT PROGRAM AGREEMENT This Grant Agreement (herein referred to as "Agreement") entered into by and between the City of Carmel (the "City") and Indiana Artisan, Inc. (the "Grantee"), is executed pursuant to the terms and conditions set forth herein. In consideration of those mutual undertakings and covenants,the parties agree as follows: 1. That on behalf of Grantee, a not-for-profit corporation, I, Rosalyn Demaree, an authorized representative of Grantee, have applied for a City of Cannel ("Grantor") Arts Grant, said application attached hereto and made a part hereof as Exhibit"A." 2. A. Grant Agreement. The City, after review and recommendation by the Mayor, agrees to grant $40,000.00 to the Grantee for the eligible costs of the project (the "Project") or services as described in Exhibits "A" and `B" of this Agreement. The funds shall be used exclusively in accordance with the provisions contained in this Agreement. Generally, the Grant award may not exceed one third (1/3) of Grantee's combined contributed income, revenue of sales, and/or ticket revenue from the previous year. The City of Cannel may, however, make exceptions for start-up organizations that have been in existence for three (3)years or less. B. Further Conditions. The Grantee and the City hereby agree that the Grantee will operate a gallery in the Carmel Arts & Design District through December 31, 2019. The Grantee and City further agree that the Grantee will adhere to the hours of operation as set forth by the Cannel City Center Community Development Corporation("4CDC") and which may be adjusted by the 4CDC from time to time. C. Payment. The grant will be paid monthly throughout calendar 2019. D. Clawback. The Grantee and the City further agree that if the Grantee ceases to operate a gallery in the Carmel Arts & Design District at any time during calendar year 2019 or fails to keep the gallery open in accordance with Section 2(B) herein or in any way breaches this Agreement the Grantee will return all monies paid under this Agreement within thirty(30)days, after notice of said breach,to the City of Carmel. 3. Design and Implementation of Project. The Grantee agrees to use any and all grant funds in accordance with the proposal contained within this agreement and any documents attached to this Agreement, which are incorporated by reference. 4. Warranty of non-profit status. Grantee hereby represents and warrants that it is a not-for-profit entity with a determination letter from the Internal Revenue Service declaring that it is exempt from Federal income tax. 5. Payment of Grant Funds by the City. The payment of this Grant by the City to the Grantee shall be made in accordance with the following conditions: A. This Agreement must be fully executed and signed by both Grantee and Grantor. B. Grantee has attached all the following information, which it represents and warrants to be true and accurate, all which have been incorporated fully by reference: 1. An application and description of the proposed use of the grant funds (EXHIBIT A); 2. A budget for the calendar or fiscal year for which the grant is requested (EXHIBIT B); 3. Certified copies of incorporation as a not-for-profit corporation under state law (EXHIBIT C); 4. A not-for-profit application or determination letter from the U.S. Internal Revenue Service identifying that it is a not-for-profit corporation that is exempt from Federal income tax(EXHIBIT D); 5. Any audits, reviews or compilations available describing the financial condition of the Grantee, most recent available IRS Form 990, and the attached Affidavit (EXHIBIT E); 6. A list of the Grantee's board of directors and officers listed(EXHIBIT F); 7. A Year End Report from the previous year if Grantee received an Arts Grant from the City of Carmel in the previous calendar year, pursuant to paragraph 8 herein (EXHIBIT G). 2 C. Any other grant conditions that City requires to be met by Grantee, specifically: 6. Grantor's right to request audit or review. Grantee shall submit to an audit or review by an independent Certified Public Accountant of funds at the City's request, and shall make all books, accounting records and other documents available at all reasonable times during the term of this Grant Agreement, and for a period of three (3) years after final payment of funds under this Agreement, for the purpose of an audit by the City of Carmel, the State of Indiana, or their designees. Said review or audit, if requested, shall be performed by a Certified Public Accountant ("CPA") who is neither an employee of Grantee nor a member of the Grantee's Board of Directors, to be provided to the City of Carmel by March 31 of the following year. 7. Quarterly financial statements. Grantee agrees to provide the City of Carmel quarterly financial statements within 45 days after each quarter-end for Grant awards in excess of sixty thousand dollars ($60,000). 8. Year-end review. Grantee agrees to provide the City of Carmel a year-end report ("Year End Report") for each year, describing how the grant was used and the impact of the dollars received. 9. Funding Credit. Grantee agrees to credit the City of Carmel in the printed materials associated with a funded program or project. The City of Carmel will supply, upon request, Grantee with the graphics/logos necessary for compliance. 10. Statutory Authority of Grantee. The Grantee expressly represents and warrants to the City that it is statutorily eligible to receive these monies and it expressly agrees to repay all monies paid to it under this Grant, should a legal determination of its ineligibility be made by any Court of competent jurisdiction. 11. Use of Grant Funds by Grantee. The funds received by the Grantee pursuant to this Agreement shall be used only to implement the Project or provide the services in conformance with the Budget and for no other purpose. If it is determined by the City that misappropriation of funds have occurred, the Grantee must return all funds received by Grantor and individuals who misuse Grant funds may also be subject to civil and/or criminal liability under Indiana and Federal law. 3 12. Employment Eligibility Verification. The Grantee affirms under the penalties of perjury that he/she/it does not knowingly employ an unauthorized alien. The Grantee affirms under the penalties of perjury that he/she/it has enrolled and is participating in the E-Verify program as defined in IC 22-5-1.7. The Grantee agrees to provide documentation to the City that he/she/it has enrolled and is participating in the E-Verify program. The City may terminate for default if the Grantee fails to cure a breach of this provision no later than thirty(30) days after being notified by the State. 13. Governing Law; Lawsuits. This Agreement is to be construed in accordance with and governed by the laws of the State of Indiana, except for its conflict of laws provisions. The parties agree that, in the event a lawsuit is filed hereunder, they waive their right to a jury trial, agree to file any such lawsuit in an appropriate court in Hamilton County, Indiana only, and agree that such court is the appropriate venue for and has jurisdiction over same. 14. Relationship of Parties. The relationship of the parties hereto shall be as provided for in this Agreement, and neither Grantee nor any of its compensated officers, employees, contractors, subcontractors and/or agents are employees of City. The Grant amount set forth herein shall be the full and maximum compensation and monies required of City to be paid to Grantee under or pursuant to his Agreement. 15. Severability. If any term of this Agreement is invalid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such term shall be deemed reformed or deleted, but only to the extent necessary to comply with same, and the remaining provision of this Agreement shall remain in full force and effect. 16. Notice. Any notice required pursuant to this Agreement shall be by First Class U. S. Mail: To Grantee: Indiana Artisan, Inc. Attn: Rosalyn Demaree 22 North Rangeline Road Carmel, IN 46032 To City: City of Carmel Attn: Mayor Jim Brainard 1 Civic Square Carmel, IN 46032 4 17. If Grantee is found by a court of competent jurisdiction to be in breach of this Agreement, Grantee agrees to pay City's attorney fees and any court or other costs. 18. Entire Agreement. This Agreement, together with any exhibits attached hereto or referenced herein, constitutes the entire agreement between Grantee and City with respect to the subject matter hereof, and supersedes all prior oral or written representations and agreements regarding same. Notwithstanding any other term or condition set forth herein, but subject to paragraph 15 hereof, to the extent any term or condition contained in any exhibit attached to this Agreement or in any document referenced herein conflicts with any term or condition contained in this Agreement, the term or condition contained in this Agreement shall govern and prevail. This Agreement may only be modified by written amendment executed by both parties hereto, or their successors in interest. IN WITNESS WHEROF,the parties hereto have made and executed this Agreement as follows: Indiana Artisan, ("Grantee") By: Inc,� (Signature) Printed Name of Officer: Rosalyn Demaree Title: Executive Director Date: v-Makle, en9 CITY OF CARMEL ("Grantor") By/L James Brainard, Mayor Date: March 27 , 2019 ATTEST: 2A LJ Date: March 27 , 2019 If you have any question concerning the City of Cannel's 2019 Arts Grant Program,grant writing,guidelines or application materials,contact: Sharon Kibbe,City of Carmel,One Civic Square,Cannel,IN 46032,Phone:317-571-2483,skibbe@carmel.in.gov. 5 Exhibit"A" An Application and Description of the Proposed Use of the Grant Funds APPLICANT: Name of Organization: Indiana Artisan,Inc. 22 N. Rangeline Road, Address: 4.1-1—W—Mai & Suite-l-2S,Carmel, IN 46032 Telephone: (317) 964-9455 No fax available Contact Person: Rosalyn Demaree Email: Rosalyn@IndianaArtisan.org APPLICATION AMOUNT: $40,000 DESCRIPTION OF THE PROPOSED USE OF THE GRANT FUNDS: Indiana Artisan,Inc. is a vibrant community of artisans with one multifaceted goal--to raise awareness about the availability of locally crafted art and food products and to leverage that awareness(brand)to expand the artisans'businesses.Many of those businesses are one-and two-person operations.They make exceptional work,have exceptional skills,and oftentimes are continuing a family tradition of creating a multi-generational art or craft,but they lack the funds or time for the necessary marketing and promotion. The organizational focus is on arts-as-economic development,leveraging what Former Lt. Governor Skillman referred to as"place-based assets." Instead of economic development via new smokestacks, arts-as-economic development efforts focus on assets already in place in every community,encouraging their expansion where they are and,in turn,driving expansion of local employment and the local economy. By: Z/6411.14.141 Printed Name of Officer: Rosalyn Demaree Title: Executive Director Date: March 19,2019 _ _ 2 Indiana Artisan helps artists develop or improve business practices designed to expand their enterprise and,through that,have a positive financial impact on their community. "To be a member of Indiana Artisan is not only a privilege but a great benefit,"according to Lily Pai,a Carmel-based jewelry designer whose work earned the Indiana Artisan designation in 2016."I have enjoyed visibility on the Indiana Artisan web page,which has led clients or art collectors to contact me about commissioned work. I enjoy selling my art at the Indiana Artisan stores in the French Lick Resort and the Carmel Arts&Design District. "Meeting the various artists in this close-knit organization is always valuable.The Viewbook(an annual catalog of Indiana's best art and food)that is distributed at the Indiana Artisan Marketplace,and throughout the year at hotels,restaurants,etc.,has a wide audience.1 am excited to have the opportunity to showcase my work in a store in the Carmel Arts&Design District." Indiana Artisan experienced 11 months of selling the work of 108 artists, including most of the eight Carmel-based ones,in a Main Street storefront in Cannel.It became a go-to gift shop for a number of city residents,as well as art enthusiasts from throughout Central Indiana.For some artists,the store was their only retail outlet.Artists and the organization are enthusiastic about the promise that a new store with a three-year lease holds. Indiana Artisan requests a$40,000 Carmel Arts grant to fund the marketing and staffing support necessary to make the store and its partnership with the Cannel Arts&Design District a success for everyone involved. OPENING A NEW CARMEL STORE Moving April 1 into the large,open space at 20 and 22 Rangeline Road will position Indiana Artisan,one of the state's premier arts organizations,to be an anchor business in the state's premier arts district.The store is expected to become a destination business over time,which will have a positive impact on all the galleries,restaurants and other stores in the District,as well as its events.Indiana Artisan believes the store will be an attraction for other small businesses to locate in the development coming to the northeast block of Main and Rangeline Road,as well. The experience of Ken Rabbers,an Indiana Artisan photographer since 2017 and Cannel resident, testifies to the possibilities of this store."As an owner/partner in Art IN Hand Gallery in Zionsville, Indiana,I had a reasonable basis for determining what I hoped my sales would be through Indiana Artisan.As it turns out,my sales at the Indiana Artisan Carmel store far exceeded my expectations. Considering the short length of time the store was open, I am amazed at the following we were able to build." The loss of the Hoosier Salon creates a deep void for artists,particularly painters,many of whom were Indiana Artisans,and collectors.The new Indiana Artisan store will help fill that void by dedicating part of the retail space as a gallery exclusively for paintings and 2D work that will feature a solo artist each month,giving each one an opportunity to raise awareness of and sell his or her work.The organization will also reach out to the many Cannel artists who are members of the Hoosier Salon,inviting them to a presentation in the store about the benefits of having work designated Indiana Artisan and urging them to apply so their work can be showcased in their hometown store. Indiana Artisan made every effort to be a community player in its Main Street location.The store not only participated in special events,it worked with the organizers of several of them one-on-one to increase the number of artists and guests attending and improve the experience for each group.Indiana Artisan sees a3 the new, larger space as an opportunity to become more invested in Carmel and to serve the city, its residents and visitors,and the visual arts community. The gallery space,for example,will be offered to local nonprofits and community groups in the near future to use at little to no cost for meetings and classes.Those meetings will draw area people to the Arts District,introducing them to the stores,galleries and restaurants.Participants in meetings at the gallery will be exposed to the work displayed there, likely connecting them with new artists.Indiana Artisan has already reached out to the communications office at the city's economic development department, pledging to provide space whenever it is needed for entertainers,a home place for games such as the scavenger hunt,and more during special events. Indiana Artisan is confident this store can make a difference to the community."Having the Indiana Artisan store as a neighbor for the past year has brought many customers into the Arts&Design District, allowing other artists in Cannel to benefit from sales produced by these additional customers,"according to Indiana Artisan fine art photographer Marie Reamer,who also is a partner in Art on Main Gallery& Gifts."Having such a vibrant artisan store in the Arts&Design District has lent additional credibility to the District as a destination to find that perfect piece of art or artisan gift." S15,000 FOR MARKETING The biggest challenge that Indiana Artisan expects in the new location is increasing foot traffic on Rangeline Road.Hoosier Salon staff cited that as the No. I problem for the Cannel gallery,and a number of people have made similar observations. While a solid customer base was developed at the Main Street store,Indiana Artisan cannot assume that all former customers will return.Experienced retailers in central Indiana say to expect a 50 percent loss of the customer base in a new location.A well-planned,well-executed and well-funded marketing plan is required to make the store successful for the artists,the city,its residents and the organization. When it was becoming clear that a lease would be signed,steps were taken to set some promotional programs in motion: • Customers from the Main Street store will be offered Welcome Back gifts that Indiana Artisan will buy from the artists through the first two months of operation on Rangeline Road. • The Olive Mill,a half-block from the new location,has agreed to a collaboration that will give its customers a 10 percent discount on purchases made at Indiana Artisan during May and June. • Donatello's Restaurant said it would consider a special event with the Indiana Artisan store. • At Carmel magazine and Current in Cannel were advised in March about the store's opening. • When an advertising contract for the Indiana Artisan Marketplace was being negotiated with WIPB in Muncie,there was also discussion about a summertime contract for the Indiana Artisan store. With a minimal marketing budget,social media had to carry the heaviest load for promoting the Main Street store,and it will again be used powerfully for the new store,once the Marketplace weekend is over on April 7. But to ensure that the Indiana Artisan store is successful for all stakeholders,the marketing program needs to be broadened. IndianaArtisan.org is a primary way artists and art enthusiasts learn about the organization.It needs to be rebuilt and updated to be even more engaging.One component of that rebuild would be to develop a robust section devoted to the retail program that would promote artisans selling in it as well as events happening in the Cannel Arts District,such as monthly gallery walks,the International Arts Festival, . . • 4 Artomobilia,Art of Wine,holiday shopping-centered events and Late Night on Main. Indiana Artisan would use$5,000 of the marketing funds from a Cannel arts grant for the rebuild. The 1,200-plus customers that elected to receive the store newsletter will be offered a small,artisan-made Welcome Back gift when they visit the store in May and June.Because Indiana Artisan was developed to help artisans build their businesses,the organization makes every effort to buy work from them,not ask for it to be donated.Up to$1,000 of the marketing funds requested in this proposal will purchase the "Welcome Back"campaign gifts from artisans. The remaining$9,000 of marketing funds would be spent strategically during the year to promote the store,while also promoting the Arts District and Carmel.This program could include sponsorships on key PBS radio and TV shows,ads in local media,ads in the Playbill for performances in the Center for the Performing Arts,and sponsorships in District events. It's important to note that members of Indiana Artisan build their businesses and reputations by being part of the organization's events and programs. Perhaps Eric Heagy,owner and winemaker of Heagy Vineyards in Cannel,explains it best: "Being a part of Indiana Artisan means being promoted as member of a community that regards craftsmanship and quality as critical. Indiana Artisan effectively promotes this message. It is clear to me that our customers recognize and appreciate this message and access. Indiana Artisan earnestly shines a light on the great and unique products made in local Indiana communities,and our business has benefitted from their efforts." Gaining marketing funds through a Cannel arts grant would allow Indiana Artisan to shine the light that Eric described even brighter,often featuring the work of Carmel-based artisans in particular. $25,000 FOR RETAIL SUPPORT The Indiana Artisan store sells work on consignment,paying artists 60 percent of their sales,a standard in the retail art field.Because the store is not a co-op or partnership like CCA Gallery or Art On Main, where artists rent their space monthly, labor laws require Indiana Artisan to pay everyone who works in the store;the store cannot use volunteers. Indiana Artisan will keep payroll costs minimal by inviting artists to work in the store for minimum wage and receive 75 percent of their sales.Being able to meet the artists and learn more about their work is also an interest-generator for customers.But as a new business that invested in attractive display fixtures and creating a special ambiance for the store,Indiana Artisan had to limit how many hours the artists could work in the Main Street store. The bulk of the 50 hours/week that the store was open was staffed by the organization's director,who is a one-person staff.All the organization's programs would be more productive if the director could devote less time staffing the store and more time planning,strategizing,organizing and marketing.For the Arts District,this would pay off with a stronger partnership from Indiana Artisan for events and attracting daily visitors and shoppers. Receiving funds to pay artists so they could staff the store more often would also free the director to partner in other ways with the District.In 2018,Indiana Artisan took a role in focus groups that discussed ways to expand the International Arts Festival,judged the rain barrel contest,recruited an artist to mentor CHS Techounds in the Chairs of a Different Color program,promoted Pedal Perks to cyclists in the store, and donated to seven charity auctions for Cannel-area nonprofits,businesses and schools.Additionally, Indiana Artisan used its social media channels to interest its nearly 12,000 followers in District events and • . . 5 to make them aware of other Carmel business offerings.This kind of corporate citizenship will grow stronger when Indiana Artisan opens the new store. More robust marketing and promotion will also demand the time of someone skilled in writing,media relations and media buying.Indiana Artisan plans to use a portion of the marketing funds requested in this proposal to hire a contractor for 16 hours a week to update the website content,plan and carry out engaging social media campaigns on Facebook and Instagram,pitch stories for earned media coverage, and determine the most effective times and places to buy advertising and sponsorships. Indiana Artisan looks forward to building the strong relationship it already has with the City of Carmel in its new store on Rangeline Road. Should you have any questions about this proposal or the organization,I am happy to answer them,Rosalyn@IndianArtisan.org,(317)964-9455. Indiana Artisan 2019 Budget EXHIBIT "B" Viewbook Magazine Income Artisans, Net of Refunds 15500 Outside Advertising 4000 Total 19500 Viewbook Magazine Expense Design 3000 Photography 560 Printing 16600 Travel,Meals, Postage,Misc. 3428 Total Expense 23588 Profit(Loss) -4088 Marketplace Income Artisan and Kentucky Booth Fees 57000 Ticket Sales 50100 Trail/Cultural Booth Fees and Misc. "All IN"exhibit 6200 "All IN"exhibit opening Total 113300 Marketplace Expense Direct Design and Layout 950 Expo Services/Equipment Rental 23545 Indiana State Fairground Rental 12320 "All IN"exhibit 9975 "All IN"exhibit opening 1900 Supplies 240 Printing 3000 Security 465 Other Marketplace Planning Expense 3500 Meals,Mileage,Entertainment,Square,etc. 600 Total 56495 Marketing and Promo Magazine TV 7100 Radio 8100 On-line 1230 Web Costs and Postage 10 Total 16440 Marketplace Trade Day Total Expense 72935 Profit(Loss) 40365 French Lick Retail Sales 80420 French Lick Artisan Payments 48252 Gross Margin 32168 French Lick Store Expenses Payroll Wages 30564 FICA and Unemployment Taxes 2,958 Workers'Comp. Total 33,522 Other Expense Credit Card Fees 1,977 Fixtures and Equipment 500 Mileage/Meals,Payroll Service and Misc. 715 Promotion/Advertising Supplies 460 Total 3,652 Total Expense 37,174 Profit(Loss) (5,006) Carmel Store Retail Sales 98,835 Carmel Store Artisan Payments 61,137 Gross Margin 37,698 Carmel Store Expenses Payroll Wages 6,366 FICA and Unemployment Taxes(wages only) 637 Workers'Comp. Total 7,003 Other Expense Rent 13,334 Credit Card Fees 2,654 Fixtures and Equipment 4,057 Mileage/Meals, Payroll Service and Misc. 37 Promotion/Advertising 374 Supplies 443 Repairs and Maintenance 300 Travel/Entertainment 356 Utilities 2,381 Total 23,936 Total Expense 30,939 Profit(Loss) 6,759 Adhesive Logo Income 304 Jury Fees 1,060 Jury Expense 250 Profit(Loss) 810 Friends of Indiana Artisan Income 500 Friends of Indiana Artisan Expense Profit(Loss) 500 Artisan Annual Dues 20,000 Board Member Gifts 4,500 Non-Board Member Gifts Miscellaneous Income Total Operating Income 64,144 Administrative Costs Executive and Administrative Compensation 39,996 Payroll Taxes 3,060 Software and Web Fees 1,734 Insurance(includes Workers'Comp in 2018) 5,669 Office Expense 2,326 Travel and Entertainment 377 BOD and Advisory Board Total 53,162 Net Surplus(Deficit) 10,982 STATE OF INDIANA ) ) SS: COUNTY OF HAMILTON ) AFFIDAVIT I, ROEpsLYN V. V EMARRE ,an authorized representative of I NOIANA AR-T ,N, 1 t4C• ("Grantee"), being first duly sworn upon my oath, state that pursuant to paragraph 8 of the City of Carmel Arts Grant Program Agreement, all income of Grantee, including a City of Carmel arts grant, if applicable, revenue of sales, and/or ticket revenue, etc., in the Grantee's fiscal year ending 2018 or calendar year ending 2017 totaled $ 262,663. le . th 1 &?t4Z4 ) Signatu Printed Name R,Cr-AlV N V DEN(A4 Subscribed and sworn to before me, the undersigned Notary Public,this Ali day of niAltrc\ber , 2018. IAVAAPA Th. _ Signature -Notary Public Printed Name Resident of County, Indiana My Commission Expires: ,�*arp�s SHARON M. KIBBE SEAL * Resident of Hamilton Co. My Commission Expires /AvoiA0' July 12, 2026 6