Location: Ann Arbor, MI           
Client: University Musical Society

The University Musical Society (UMS) has embarked on a substantial planning effort for a new facility in Ann Arbor, Michigan to serve as headquarters, producing and presenting venue, and arts accelerator for the organization.  This move will yield operational and economic changes and alter the economic system under which the $9m organization has operated for 140 years; it has never operated its own facility, only presented and produced work within venues at the University of Michigan.

KO Projects was asked to evaluate the economic and operational impact of the proposed project, whether as a stand-alone building or part of a mixed-use building in collaboration with a developer partner.  The study’s work included reviewing project plans, current economic results, and other data; working with UMS to refine project goals; modeling preliminary operations and financial results for the new building; outlining a recommended capital structure for project implementation and operations; and recommending next steps in project planning.

Based on project objectives, we examined the range of capital & operating costs, and, using a parametric financial model, we estimated the impact of various development scenarios, as well as their effect on institutional capacity, sustainability, and capital campaign potential. 

with: Charcoalblue