Economy Forces Critical Look At Torpedo Factory

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(Tuesday) February 9, 2010

By Carla Branch and James Cullum
alexandrianews.org

Budget shortfalls and the waterfront planning process prompted an analysis of the viability of the Torpedo Factory Art Center. A report, which was commissioned by the city of Alexandria, concluded that the Torpedo Factory must make physical and operational changes to reach its potential as a premier City tourist destination.

In 1974, no one knew what to do with a World War II-era torpedo factory on Alexandria’s waterfront except Marian Van Landingham and a group of her artistic friends. They convinced the City to give them $140,000 to renovate the building and turn it into an art center. The rest is history and the Torpedo Factory Art Center is now the most popular tourist destination in Alexandria, hosting nearly a half million visitors each year.

However, a study, which was conducted by Management Analysis Inc. said: “The Torpedo Factory must improve its sales focus. Without adequate sales, the art center cannot adequately market itself, nor afford improvements that will benefit its tenants. It will not achieve a greater economic contribution to the City. The art center must focus on its customers. It must be open during the hours visitors wish to come. It must refresh its appearance, must have adequate signage and features that will enhance the visitor experience. Certain internal operations must be adjusted to reduce losses and improve operational efficiency.

“The Torpedo Factory is a valuable public asset which for many years has been governed by a cooperative association of internal volunteers with limited management experience. For the art center to survive and thrive, future sustainability requires greater support and participation by the City. It needs the input of external stakeholders as active partners in governance and continuous improvement. With this support, the artists that work in the Torpedo Factory will have a greater opportunity to focus on their core strengths: the creation and promotion of fine visual art,” the study said.

Last year, Alexandria City Councilman Rob Krupicka drew criticism from the art community when he suggested that there needed to be some changes at the Torpedo Factory. “This is a very comprehensive report. It shows the great strengths of the Torpedo Factory and has some very thoughtful recommendations for how we can make the Factory and even stronger and more successful part of our city. As the report points out, we can do more to ensure the Factory celebrates art and serves our community. I’m looking forward to reviewing this with my colleagues and the arts community,” Krupicka said.

Recommendations

The study considered several key issues and recommended strategies for addressing them. One issue was to justify the Torpedo Factory’s continued presence in its prime Waterfront location. The study concluded that “In collaboration with Waterfront planning efforts, the City should reinvest in new signage and the external façade to help attract more visitors. The City should revisit lease terms in order to reduce subsidy and increase revenue. The building’s interior should be reconfigured to improve the visitor experience and convert more of the first floor common space to rentable area. New features to revitalize the art center should include a central gallery and a restaurant, which would stay open longer hours. The artists should expand their efforts to host and promote special art events, collaboration with other arts organizations, art in public places, education and community outreach programs.”

The Torpedo Factory must be more financially self sustaining. “Key internal operations should be adjusted to reduce losses, increase efficiency, and better support the core business; The marketing and public relations budget must be maintained at an adequate level (and) the TFAA should explore greater collaboration and sharing of resources with The Art League in order to save money and increase efficiency,” the study said.

It was recommended that there be more dialogue and participation by community stakeholders to ensure management continuity and continuous improvement. “A new streamlined governance structure should be created to improve continuity, broaden skills, experience and capability of managing the art center. An advisory board should include both internal and external stakeholder,” the study said.

A financial audit of the lease terms, conditions, payments and actual costs should be undertaken to ensure that financial arrangements throughout the years have been accurate in recovering all costs. A tiered rental rate for the building should be established, which considers the value of prime space on the first floor that receives a higher volume of visitors and therefore offers greater potential to earn sales.

The study made the following recommendations: The City should receive some revenues earned from common area usage, including a share of the after hours building rentals, which now benefit the TFAA exclusively – but for which the City pays the full cost of utilities. A greater percentage of the common areas should be converted to rentable space. The percentage of utilities subsidized by the City should be evaluated. As part of revitalization efforts, the City should make a portion of the first floor available for a new food and beverage outlet that could stay open longer hours. The space could be leased directly by the City to the new tenant at market rate. A central gallery should be created on the first floor. This could incorporate existing small galleries, more of the current common areas and provide a visitor-friendly feature that could expose visitors to what is made throughout the art center. This feature should stay open longer hours. The City and TFAA should invest in new signage to help draw more visitors to the Torpedo Factory. More prominent information and advertisements about the Torpedo Factory should be placed in Alexandria visitor information and marketing materials.

City Council will review the study at the next legislative meeting.

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