AMP Expansion Could Shift Revenue Percentage

The Walton Arts Center is spending money in hopes of making money.

The result will be a renovated, redesigned AMP at Northwest Arkansas Mall. The amphitheater, most often used for concerts, will expand from about 3,500 seats to 6,400.

The projected cost is about $4 million, WAC COOTerri Trotter said.

The long-run benefit, however, could be a boost in revenue and also a shift in the way it is generated.

Trotter said the current split between earned income like ticket sales and unearned income such as fundraising is about 50-50. Increasing not just the venue’s capacity, but the number of events and scaling, could push the split closer to 60-40.

Groundbreaking on the facility is expected to begin in early October and an ambitious plan calls for a full season of events starting in summer 2012. If that’s achieved, a total of 15 to 21 events could draw between 31,500 and 44,100 customers, based on 35 percent attendance projections.

“We don’t base anything on unrealistic numbers,” Trotter said.

Projected revenue numbers have been based on a 2005 national study conducted by Americans for the Arts.  The study showed attendees of nonprofit arts and cultural events in Northwest Arkansas spend an average of $24.34 per person, above the cost of admission.

Non-local attendees, meanwhile, spend an average of $40. Together they generate more than $16 million in economic activity and more than $1.4 million in tax revenue annually.

Funding for the project is varied. The Willard and Pat Walker Charitable Foundation has given a $1 million lead gift, Trotter said, while the Fayetteville A&P Commission recently pledged a $500,000 grant.

Another $1.2 million will be gained via a construction loan. Cash reserves also are available should additional gift and fundraising efforts fall short.