The owners of the Jeanne B. McCoy Community Center for the Arts have begun payments toward large-scale maintenance the building is expected to need as it ages.
New Albany, the New Albany-Plain Local School District and Plain Township amended their operating agreement for the McCoy to add a fund for capital-maintenance improvements
According to the revised agreement, the partners will pay for repairs and replacements in proportion to how much money they originally put toward the facility's construction in 2008 at 100 W. Dublin-Granville Road.
The original agreement from 2008 lists New Albany and the school district as spending $5 million and the township as spending $3 million. That means the city and the school district each would be responsible for about 38 percent of capital-improvements costs, while the township would be responsible for about 24 percent.
Although the New Albany Community Foundation provided $2 million toward the construction of the McCoy, the foundation doesn't own the building, said Craig Mohre, president of the foundation.
Plain Township trustee Dave Olmstead said beginning in January 2016, the owners began reviewing the McCoy agreement and agreed on a method of funding the capital-improvements fund. Due to timing, each entity agreed to make contributions for both 2016 and 2017 this year, he said.
"We just doubled it up," he said.
The owners plan to review the facility's future needs annually, Olmstead said, and the amounts contributed each year could change depending upon the amount and timing of future capital needs.
Although capital-improvements projects have not yet been needed because the building is less than 10 years old, the McCoy board of trustees, the school district and CAPA, which manages the facility, have determined a list of estimated projected expenses, Olmstead said.
Because the joint-operating amendment wasn't approved until the end of 2016, the owners decided to make a double payment in 2017 to make up for the previous year, New Albany City Manager Joe Stefanov said.
In July, the owners' representatives voted unanimously to base their 2017 contributions on a 14-year schedule that projected the facility's needs through 2030, Stefanov said. That schedule required a combined annual contribution of $70,870.
"As the building ages, more and more capital needs will be necessary," Stefanov said.
At their July meeting, the owners' representatives agreed that starting in 2018, they would move to a 21-year funding schedule that projects needs through 2037 in order to provide a stronger financial foundation for the facility, Stefanov said.
The city has planned to pay $54,570 in 2017 and $40,924 in 2018, Stefanov said.
The school district will pay the same amount as the city both years, said district finance director Becky Jenkins.
The township will pay $32,600 in 2017 and $24,448 in 2018, she said.
The capital-improvements fund will receive $141,740 for the first year and $106,296 for the second, for a total of $248,036, Jenkins said.
The 15-year plan for the McCoy, updated April 20, 2016, covers 2016 to 2030 and has a total cost of $1,996,389.
Plain Township Administrator Ben Collins said the township annually provides $20,000 for general operations at the McCoy.
New Albany also provides the same amount for annual general operations, city spokesman Scott McAfee said.
Jenkins said New Albany-Plain Local also covers annual general operating costs, which include maintenance.
The district spends approximately $160,000 on those items each year, she said.
Part of that annual total includes CAPA costs billed to the district for schools-related events at the McCoy. Jenkins said the total costs from CAPA last year were approximately $11,500, which is included in the $160,000 the district pays each year.
CAPA's contract to manage the McCoy for fiscal 2018 is $75,000, according to a budget spreadsheet provided by Jenkins.
However, the amount varies from year to year depending on performances and use, she said.
The McCoy's total budget for fiscal 2018 is $191,250, according to the document.