When planning a capital project, one of the major challenges is to secure the funds required to complete the project. Typically, there are four major sources of capital funding
which you can explore: government funding, private fundraising, partnerships and other sources and project financing.
The broad financial parameters for both your capital development and operational budgets will be established through your feasibility study
, site selection
and the design/development process
and tested through business planning.
By working closely with your local municipality
you will be able to identify how they can help facilitate your development process and with their help establish what planning and fiscal incentives
may be available to you.
Artscape has prepared a listing of capital funding sources
which includes a selection of local, provincial and federal programs and foundations, including those designed to support cultural sector projects, such as the Cultural Spaces Canada
program, as well as other sources of capital funding directed at achieving diverse policy objectives including, for example, economic development, rural development and green building and stewardship programs.
At Artscape our objective is to reduce or eliminate the need to carry financing (a mortgage, for example) into the operational budget of the project in order to keep operational costs as low as possible – thus enabling us to offer our tenants affordable rates. On average our rents are about 65% below comparable market values across all ten of our properties. To achieve this it is essential that we are able to attract capital funding from diverse partners, stakeholders and supporters through a shared, powerful and compelling project vision
to find out more about the range of property and tenancy types and spectrum of affordability of Artscape facilities.
Each of Artscape’s projects operate on a cost-recovery
basis without any direct subsidy. The operating budget
sets out the detailed, ongoing operational costs of the project, as well as the cost of any financing (i.e. mortgage payments) being carried in the project. In a multi tenanted facility the rent you receive from tenants will be the most important source of earned revenue. In addition your project may generate earned income from a number of other sources which may include services you provide (i.e. Space Rentals, On Site Parking, Laundry) revenues from sales (i.e. retails, catering) and even revenues from direct programming.
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When planning a capital project one of the major challenges is to secure the funds required to complete the project.
Celia Smith, Executive Vice President at Artscape, discusses various ways your city may be able to help with your development p...
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