Deborah Cullinan and Yerba Buena Center for the Arts

Abstract

The case study describes the work of Deborah Cullinan during her tenure as executive director of Intersection for the Arts and in her new role as executive director of Yerba Buena Center for the Arts (YBCA). The case begins as Cullinan is conducting a strategic refresh of YBCA, and deciding how to navigate an array of opportunities and challenges. Some of the challenges include staff fatigue resulting from a constant push for innovation under her predecessor; skepticism that the focus on the community will diminish artistic excellence; questions about Cullinan’s ability to manage a large institution; changes to the Yerba Buena Gardens complex that may affect YBCA’s tenancy and 14 percent of its revenue; a fraught environment in which artists and community members are being priced out of San Francisco by the influx of tech companies and their highly-paid workers, potentially altering the character of the city forever.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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Resources

Exhibit 1: San Francisco 2014

As of 2014, San Francisco had the highest median rent in the U.S. at $3,350 for a 2-bedroom apartment, a year-over-year increase of 12.4% (compared with 3.3% nationally). 1 The median sale price for a house was $950,000 ($835/square foot). 2

These soaring housing prices correlated with the rapidly rising number and wealth of technology-sector workers who chose to live in San Francisco, and the lack of available housing within the city. According to The New York Times, the average base salary for these tech workers was just over $100,000, and the IPOs of Google, Facebook, and Twitter created 1,000, 1,000, and 1,600 new millionaires, respectively. Seventy-five thousand new residents who moved to San Francisco in the past 10 years; during this same period, only 17,000 new housing units were built. 3

A rapidly decreasing number of middle- and lower-income workers could afford to live in San Francisco—only 14% of homes were affordable for middle-class households. 4 During the three-year period ending in winter 2013, evictions in San Francisco increased by 38% and those evictions conducted under the Ellis Act (primarily used when landlords want to sell the property) increased by 170%. 5 This meant that artists, schoolteachers, and police officers (for example) were being priced out of the city completely.

The City of San Francisco started to develop plans to address the significant shortage of affordable housing in San Francisco. In 2014, Mayor Ed Lee announced plans to build or rehabilitate 30,000 new homes by 2020, and stated his intention that one-third of the new units would be “permanently affordable” to lower-income households. Another proposed change would make it more difficult for landlords to take existing housing units off the market. 6

The changing economic landscape of San Francisco was accompanied by a perceived “gentrification” of the city. “Critics say that San Francisco’s communities of alternative culture, ethnic or otherwise—the soil of its creative mojo and legendary social movements—are being turned into playgrounds for rich people. If San Francisco’s soul is its social and economic diversity and status as a refuge for those outside the mainstream, then it is being lost.” 7 “They are not only expelling the homeless and the gangbangers,” said Guillermo Gómez-Peña, a performance artist. “They are also expelling the performance artists, the poets, the muralists, the activists, the working-class families—all these wonderful urban tribes that made this neighborhood a very special neighborhood for decades.” One day, he added, “they will wake up to an extremely unbearable ocean of sameness.” 8

A handful of developments emerged in San Francisco that were not only affordable, but catered to specific lower-income groups (including artists), such at the g2 Lofts that provided 29 live/work lofts, a gallery, a studio, and performance spaces intended for nonprofit artists. 9

Exhibit 2: Intersection for the Arts

Mission

Intersection for the Arts is a leading-edge arts and community development organization that connects people and communities across physical, social, cultural, and economic boundaries to instigate change.

History

Founded in the early 1960s, Intersection for the Arts began as a merger of several faith-based experiments that were using art to reach disenfranchised neighborhood youth while also providing artists who were conscientious objectors with an alternative to serving in the Vietnam war.

Programming

Intersection for the Arts creates and facilitates performance, literature, visual and interdisciplinary art that transcends boundaries, cultivates collaboration and exchange, and inspires community transformation.

  • The Theatre Program creates innovative theatre, dance theatre, and interdisciplinary performance, working with resident theatre companies Campo Santo, the Erika Chong Shuch Performance Project, the Living Word Project, Felonious, a wide range of artists and communities who are committed to the process of making new work that grapples with the important questions of current times.
  • The Gallery at Intersection develops and presents installations and exhibitions that reimagine the role a gallery plays in civic life.
  • The Literary Program cultivates the expansive and evolving role of independent literature in the world and builds audiences for live literary experiences.
  • Jazz at Intersection celebrates the depth and breadth of the jazz tradition, presenting Bay Area composers and musicians in intimate performance events.
  • The Education and Engagement Program provides opportunities for people—regardless of their experience—to engage in an interactive exploration of the process of creating new art from conception to fruition.
  • Intersection’s Artist Resources/Incubator Programs support artists who are making important contributions in the community and include the Intersection Incubator/Fiscal Sponsorship program, which provides its members with assistance in funding, developing, and realizing their creative lives.
Financial Summary FY 2012

REVENUE

Contributions & Grants

$2,005,596

Program Service Revenue

$432,424

Investment Income

$5,090

TOTAL Revenue

$2,443,110

EXPENSES

Salaries, Other Compensation Paid

$587,416

Fees for Services (nonemployees; includes legal, accounting, other)

$716,134

Other Operating Expense

$629,538

TOTAL Expenses

$1,933,088

NET SURPLUS/(DEFICIT)

$510,022

Source: Intersection for the Arts.

Exhibit 3: Yerba Buena Gardens

Historical Context

Following World War II, officials in San Francisco became concerned about the “blight” in the South of Market neighborhood. Filled with inexpensive housing, 12 blocks of this primarily poor and working-class area were identified by the San Francisco Redevelopment Agency (SFRA) for redevelopment in 1953. The plan required eviction of 4,000 residents, clearing all structures from the area, and replacing them with a convention center, a museum, office buildings, and retail.

In 1967, SFRA formed the Yerba Buena Redevelopment Area (YBRA), which started condemning and demolishing buildings, and evicting tenants.

In 1969, Tenants and Owners in Opposition to Redevelopment (TOOR) was formed and, along with the Neighborhood Legal Assistance Foundation, organized petitions, testified at public hearings, and brought significant attention to the events. TOOR successfully secured an injunction to halt the demolishment of any more residential hotels in the area. By 1973, TOOR and the SFRA finally reached an agreement that ensured former residents of the Yerba Buena redevelopment area would be guaranteed housing. 10

In 1976, Mayor George Moscone’s appointed a Select Committee to seek public input, shaping the project’s eventual design: 1) subsidized housing; 2) mixed commercial and public space use; 3) an underground convention center covered with a public garden. As part of this, the SFRA required the developers on the project to earmark both land and dollars for cultural institutions. 11

Work on the Yerba Buena Center finally began in the late 1970s, starting with the low-income housing and the Moscone Center. The Esplanade and the Yerba Buena Center for the Arts opened in 1993, and the San Francisco Museum of Modern Art completed its relocation to the area in 1995. In 1998, the central children’s area (including Zeum, a children’s arts and technology museum) was completed and the following year, the Metreon opened. These anchor institutions were rounded out in 2005 by the opening of the Contemporary Jewish Museum and the Museum of the African Diaspora. 12

Current Context

Efforts began in 2010 to expand the Moscone Center. According to a partnership of the City, the San Francisco Tourism Improvement District Management Corporation, and the hotel industry, the Center “is operating at capacity and is losing business to competing markets with more space to offer.” 13 Currently the Center accounts for 21% of tourism dollars and 27% of hotel occupancy for the city; without expansion, an independent study shows a $2 billion dollar loss in direct spending between 2010 and 2019. 14 Some community members were unhappy about the planned expansion, citing the agreements that settled the original lawsuits surrounding the Yerba Buena Center development in the 1970s.

Source: YBCA.

Exhibit 4: Yerba Buena Center for the Arts

Mission

YBCA is an integrated site of creative endeavor; a unique fusion of art, innovation, and ideas in a social environment. It serves as a curated platform for the dynamic convergence of artists, inventors, producers, thinkers, and community to sustain multiple levels of participation, propel short- and long-term social change, and insure that live arts and living artists are vital to society.

Programming

Visual Arts – The rotating exhibitions at YBCA featured works by regional, national, and international contemporary artists, introduced works that tap into timely ideas and topics, and empower the viewer to feel and experience the world more fully.

Performing Arts – Each year YBCA Presents has featured an extraordinary lineup—from emerging to established and revered choreographers—who are taking risks and experimenting with the boundaries of their form. Through Community Rentals, YBCA partnered with dozens of local performing arts companies, opening our stages for their home seasons, festivals, and events.

Film/Video – Highlighting more than 100 films each year by filmmakers leading their field in exploration of subject matter and technique, YBCA’s Film/Video program has developed a strong following of Bay Area filmgoers and received critical acclaim for its eclectic, thoughtful, and provocative programming.

Community Engagement – A vibrant schedule of educational, social, and interactive programming—including YBCA’s groundbreaking adult education and engagement program YBCA: YOU, plus a wide variety of civic engagement events, community conversations, artist/curator talks, hands-on workshops, and more—has allowed YBCA’s audiences to experience deeper connections with artists and their work.

Community Rentals

In addition to the artistic programming, YBCA has also operated a Community Rentals program. Each year, YBCA rented space for local performing arts groups to present their work. Past presenters have represented a wide variety of content, from ODC Dance to Queer Women of Color Media Arts to SF Jazz.

YBCA has become an integral and recognized venue for corporate and commercial entities to host events, benefitting from YBCA’s reputation for innovation and creativity. Clients have included Apple, Salesforce.com, Google, Twitter, Oracle, TED, Font Shop, and many others.

Audience Demographics

(June 2013; not all percentages add to 100% due to question(s) left blank.)

This diversity of programming has attracted more than 150,000 visitors from the Bay Area and beyond each year. Of these visitors:

  • 3% are under age 25, 43% are ages 25-44, 33% are ages 45-64, and 12% are 65 or older
  • 61% are female, 28% are male, and 1% identify as other
  • 46% come from within San Francisco, 38% come from the Bay Area, with the remaining 8% coming from outside the Bay Area
  • 55% are non-Hispanic White, 13% are Asian/Pacific Islander/Asian American, 7% are Hispanic, 6% are Mixed Background, 4% are Black/African American, 1% are Other Race, and 1% are Native American/Alaska Native
  • 9% have some college or technical school, 40% are college graduates, 32% have a Master’s degree, and 10% have Doctoral degree
  • 34% have household incomes greater than $100,000, 27% are between $50,000 and $99,999, and 24% are under $50,000

Source: YBCA.

Exhibit 5: YBCA Sample Programming, 2013-2014 Season

Exhibition

Migrating Identities, Jun 28 – Sep 29, 2013, Downstairs Galleries

The eight artists in this exhibition form a sampling of a generation’s response to relocation to the United States from another country.

Performance

Ann Dyer: Vak: Song of Becoming, Sep 20-21, 2013, YBCA Forum

Vak challenges our understanding of audience, contemporary music, and spirituality in a concert performed by a 108-person choir made up of “every day” voices, which arouses our awareness of self and our connection to others.

Film/Video

Band of Sisters by Mary Fishman, Jul 18-21, 2013, Screening Room

Band of Sisters tells the story of Catholic nuns and their work for social justice after Vatican II of the 1960s.

Community Engagement

Want.Here.You.Now, May 7 – Sep 15, 2013, Front Door Gallery

Ana Teresa Fernandez, Kenneth Lo, and Jennifer Locke explore our complex and often fragmented connections to others through an interactive experience paired with unexpected media to uncover what we lose and gain as we move through our lives.

YBCA: ConVerge, Third Thursday of every month, Grand Lobby

A series of free, monthly public gatherings featuring artists from around the Bay Area.

Workshop/Interactive

50 Cent Tabernacle, Five one-hour dance classes for just 50 cents, Mix and match or take all five.

Oct 6, 2013: African Diaspora Dance

Dec 8, 2013: Global Dance

Feb 9, 2014: Contemporary Dance (Nora Chipaumire)

Mar 15, 2014: Dance from Brazil

Apr 5, 2014: Contemporary Dance (Margaret Jenkins Dance Company)

Commercial Rentals

September 2013

Old Navy

KQED, Inc.

Office of Community Investment & Infrastructure

San Francisco Foundation

Hartmann Studios (Oracle OpenWorld)

Scripted

Atlassian

Community Rentals

July 2013

Post: Ballet

American-Orient Performance Art

California Chines Orchestra

Lamplighters Music Theater

Source: YBCA.

Exhibit 6: YBCA Financial Statements

FY 05-06

FY 06-07

FY 07-08

FY 08-09

FY 09-10

FY 10-11

FY 11-12

FY 12-13

REVENUE

Successor Agency – Office of Community Investment and Infrastructure*

3,391,927

3,391,927

3,391,927

3,391,927

3,391,927

3,166,350

3,166,350

3,163,500

Contributed Revenue

Government

48,163

28,000

27,500

36,500

1,200

56,595

71,446

126,147

Foundations

496,605

408,526

700,946

731,544

690,215

597,183

610,625

538,275

Corporations

180,258

268,683

580,246

469,126

323,695

414,027

460,282

178,465

Individuals / Board Members

332,375

447,979

487,725

361,850

352,255

298,205

364,610

239,448

Memberships

104,355

116,808

127,737

92,048

76,253

81,662

72,403

62,662

Artist Ball

-

397,306

-

298,400

-

-

-

-

Other special events

5,470

30,125

11,553

18,400

18,768

6,825

10,228

-

TOTAL Contributed Revenue

1,167,226

1,697,427

1,935,708

2,007,867

1,462,387

1,454,497

1,589,594

1,144,997

Raffle Income (net of expenses)**

-

-

-

1,035,029

1,500,886

1,124,930

1,776,065

4,181,432

Admissions

Gallery admissions, Visual Arts events

142,230

111,318

93,560

102,693

36,888

50,209

39,463

45,855

Traveling exhibition fees

163,936

15,510

72,412

58,182

40,000

94,000

135,000

35,015

Film / Video

35,629

49,285

48,663

37,673

38,246

33,511

38,806

37,866

Performing Arts

240,375

242,512

204,338

172,595

287,133

170,811

139,446

116,372

Conversation Series

-

-

-

-

-

-

10,543

11,085

YBCA You

-

-

-

-

-

-

1,312

18,852

Community Engagement

2,546

-

1,114

11,731

25,279

27,320

5,648

3,530

TOTAL Admissions

584,717

418,624

420,087

382,873

427,546

375,851

370,218

268,575

Subsidized Community Rentals (net of expenses)***

342,227

310,182

283,580

144,446

185,629

272,557

336,809

302,316

Commercial Rentals (net of expenses)****

263,302

535,797

583,391

398,266

1,144,821

1,608,515

1,370,936

1,430,411

Other Earned Revenue

Catalogues, retail, merchandise, program ad sales

118,792

100,654

152,585

92,918

69,976

27,606

19,571

5,375

Box office transaction handling fees

97,642

107,641

119,399

99,869

108,455

142,342

124,256

112,824

Concessions income

-

-

-

-

-

90,897

97,361

101,989

Transfer from endowment

87,774

76,551

78,882

79,413

50,000

80,000

100,899

100,289

Investments and interest

46,667

53,895

61,018

53,316

47,430

49,949

57,381

71,332

Miscellaneous

21,033

25,443

37,612

24,184

18,768

13,288

7,281

8,369

TOTAL Other Earned Revenue

371,908

364,184

449,496

349,700

294,630

404,083

406,749

400,178

TOTAL REVENUE

6,121,307

6,718,140

7,064,189

7,710,108

8,407,826

8,406,782

9,016,721

10,891,409

EXPENSES

Program Expenses

Visual Arts

852,890

864,346

1,128,771

1,264,125

1,407,784

1,375,649

1,334,149

1,329,175

Film/Video

131,407

162,265

194,010

210,145

219,512

212,154

229,833

231,207

Performing Arts

507,825

525,419

750,428

762,011

808,778

820,448

736,907

856,499

Community Engagement

258,625

262,279

361,989

484,112

428,828

405,558

525,071

555,878

In Community

0

0

0

0

0

0

0

74863

TOTAL Program Expenses

1,750,748

1,814,309

2,435,198

2,720,393

2,864,903

2,813,809

2,825,960

3,047,622

Program Support

Marketing / Audience expense

812,571

861,285

988,529

922,638

954,485

831,069

914,249

848,495

Box office expense

321,140

314,968

319,302

351,757

341,955

315,731

318,077

299,554

Event support expense

181,881

253,567

275,290

240,362

317,933

357,885

367,282

367,295

Concessions expense

-

-

-

-

89

64,942

63,043

72,542

Development expense

400,709

785,586

499,296

1,004,276

458,233

444,399

498,337

505,931

Production management

335,835

278,395

266,870

305,411

246,973

258,729

286,246

406,304

TOTAL Program Support

2,052,135

2,493,802

2,349,286

2,824,445

2,319,668

2,272,757

2,447,234

2,500,121

Other Expenses

Facilities

1,218,159

1,037,973

1,000,807

1,027,281

960,306

995,173

1,057,822

1,103,830

Administration

1,110,228

1,144,108

863,054

889,599

987,774

947,194

1,048,207

1,070,983

IT

6,079

52,477

229,248

274,325

333,009

343,725

341,626

368,553

HR

-

-

88,325

166,218

201,560

252,212

195,091

341,259

TOTAL Other Expenses

2,334,467

2,234,559

2,181,434

2,357,424

2,482,649

2,538,304

2,642,746

2,884,625

TOTAL OPERATING EXPENSES

6,137,349

6,542,670

6,965,919

7,902,262

7,667,220

7,624,869

7,915,940

8,432,368

NET UNRESTRICTED SURPLUS /(DEFICIT)

(16,042)

175,470

98,270

(192,154)

740,606

781,913

1,100,781

2,459,041

Notes:

* Revenue from the Successor Agency – Office of Community Investment and Infrastructure: Contractual agreements with the Marriott Hotel, Metreon, Moscone Center, Millennium Partners and other nearby retail and commercial areas channel a fee or lease payment paid by these organizations into a separate account originally held by the San Francisco Redevelopment Agency and currently held by its Successor Agency, the Office of Community Investment and Infrastructure. The funds from this separate account go to support the maintenance, operations, and security of the cultural parcels owned by the SFRA/Office of Community Investment and Infrastructure, including YBCA. This is a guaranteed source of funding that provides a reliable source of annual income.

** Raffle Income: Beginning in FY 08-09, YBCA started running the San Francisco Dream House Raffle (sfraffle.com). The raffle awards multiple prizes, with the grand prize winner able to choose between a house or cash. In 2014, the grand prize cash award was $4 million.

*** Subsidized Community Rentals: YBCA rents various spaces in its facilities out to nonprofit performing arts organizations from the Bay Area and beyond at a discounted rate, giving them access to the performance, exhibition, and reception space available at YBCA.

**** Commercial Rentals: YBCA makes many of its facilities spaces available for rental to corporations and businesses and other non-performing arts nonprofits for presentations, conferences, receptions, and other events. Rates range from just over $2,000 up to $15,500+ for the various spaces (www.ybca.org/rentals/fees).

Source: YBCA.

Exhibit 7: YBCA Strategic Filter, May 19, 2014 draft

What is a Strategic Filter?
  • Based on Strategic Priorities
  • Tool for planning purposes to align current programs with Strategic Priorities and Goals
  • Tool for staff and board to evaluate and tweak future ideas and opportunities
Potential Strategic Filter Questions
  • Does this—activity, service, opportunity, program, partnership, etc.—contribute to fostering YBCA’s target communities 15 that connect to form a dynamic, diverse, and sustained network of people 16 that continues to engage with each other and YBCA over time?
    • Does it include historically marginalized communities 17 and/or those communities most at risk of displacement 18 ?
    • Is it cultivating intentional connections that encourage cross-fertilization and interaction beyond the particular activity?
    • Does the network continue over time?
  • Is it designed to engage YBCA’s networks in generative dialogue and exchange about the critical questions and important stories of today 19 ?
    • YBCA has a methodology of determining these.
  • Does it provide clear pathways for interdepartmental collaboration 20 resulting in strong execution of the “YBCA Experience” 21 ?
  • Does it provide opportunities for people to connect, to contribute actively and creatively?
  • Does it enhance YBCA’s civic leadership 22 and connect art and artists to community life 23 ?
  • Does it enhance YBCA’s artistic leadership 24 ?
  • Does it support the local arts ecosystem 25 of artists and arts organizations?
  • Does it support a “Learning Culture 26 “ fostering creativity, encouraging feedback, emphasizing accountability, interrogating assumptions, generating knowledge that will be shared w/others?
  • Is it an integrated part of a sustainable revenue strategy 27 for YBCA?
    • Does this program have a revenue solution (earned or contributed) that sustains total programs costs (direct and indirect expenses) for the first year? Over multiple years?
    • Does this lead to a new revenue generating opportunity 28 for the organization?
    • Is this a program that needs ongoing subsidy?

Note: All terms defined by YBCA, many through a regular and inclusive process:

Source: YBCA.

Notes

1. http://www.huffingtonpost.com/jed-kolko/5-truths-about-housing-co_b_4741129.html.

2. http://www.redfin.com/city/17151/CA/San-Francisco, 4/13/2014.

3. http://bits.blogs.nytimes.com/2014/03/02/the-housing-market-with-nowhere-to-go-but-up/

4. http://www.huffingtonpost.com/jed-kolko/5-truths-about-housing-co_b_4741129.html.

5. http://www.sfgate.com/bayarea/article/San-Francisco-evictions-surge-report-finds-4955020.php.

6. http://time.com/5961/8-solutions-to-san-franciscos-housing-problems/

7. http://www.theguardian.com/world/2014/feb/23/is-san-francisco-losing-its-soul.

8. http://www.nytimes.com/2013/11/25/us/backlash-by-the-bay-tech-riches-alter-a-city.html?pagewanted=1&_r=0.

9. http://www.dbarchitect.com/project_detail/64/18th%20%2B%20Arkansas%20g2%20Lofts.html.

10. http://www.sf-planning.org/modules/ShowDocument.aspx?documentid=372.

11. http://yerbabuenagardens.com/history/

12. http://www.iaapa.org/docs/handout-archive---ops/Mon_Neches_MuseumsArtsCulturePDF.pdf.

13. http://mosconeexpansion.com.

14. http://mosconeexpansion.com, March 5, 2014 meeting presentation.

15. Targeted Communities: those communities we prioritize in order to continue to reflect and involve the people who are living and working in the Bay Area.

16. Network of People: a diverse and interconnected group of people that generates a feeling of belongingness and a sense of opportunity.

17. Historically Marginalized Communities: low-income communities, vulnerable communities, and communities of color who are often left out of mainstream conversation.

18. Communities most at risk of displacement: historically marginalized communities who are least likely to benefit from economic growth.

19. Critical questions and important stories of today: the local and global questions and stories that reflect the concerns that are most relevant to people who are living and working in the Bay Area.

20. Interdepartmental collaboration: multiple departments working together to define success, to implement, and to evaluate.

21. YBCA Experience: a warm, welcoming, inspirational experience that provides people with the opportunity to participate in a growing network.

22. YBCA’s civic leadership: a commitment to placing art at the center of civic life and to collaborating across sector to address important questions and issues.

23. Community life: the people, organizations, resources, and treasures that constitute community.

24. YBCA’s artistic leadership: supporting, collaborating with, and presenting emerging and leading artists.

25. Local arts ecosystem: Bay Area artists and arts organizations of all kinds.

26. Learning Community: organizational values, conventions, processes, and practice that encourage individuals and the organization as a whole to increase knowledge, competence, performance, and opportunity.

27. Sustainable revenue strategy: a strategy that results in revenue that can be depended upon for an extended period of time.

28. Revenue generating opportunity: likely and identified earned or contributed revenue sources.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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