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Polaris 20252025 Lodging Tax Application Coversheet Organization Name: PU�L ! 0 QA0-4A [I I S+0 r I C _T%14,(JI ►-L r—QUAd i *V Month/Timeframe of Event or Operations (? 5 - PC I ax s Event/Activity (check/complete all that apply) ,Tourism Promotion Operations (Event/Festival Title) ❑ Operations (Facility, Staffing, Other) Amount of Request $ <7006 Presenter & Title d re D m �' r Phone � b D `c-,--7 i — -q oao Email n _ &h&MA V\ 11�, C 0 N'I ORCHARD 2025 Lodging Tax Application Checklist Submittal Checklist Application Transmittal Checklist P Applicant Acknowledgement Submitted by Thursday. October 24, 2024 by 2PM Responses*: 0-Marketing Plan Ol'inancial Status OReporting Requirements *Does not exceed 3 pages Attachments: E Total LTAC Budget 2 Up to 5 Examples of Marketing El 2024 Year -To -Date Income Statement 0 2024 Year -To -Date Balance Sheet D 2023 Income Statement 0 2023 Balance Sheet �kMost Recent Tax Return or Financial Statement from an independent source ORCHARD 2025 Lodging Tax Application Applicant Acknowledgement Applicants accept the following conditions: Application Deadline — October 24, 2024, by 2PM Applications will be accepted by e-mail at cityclerk0portorchardwa.aov Late applications will not be accepted • Responses to be limited to 3 pages, plus required attachments • Successful, eligible applicants may be contacted to schedule an interview with the Lodging Tax Advisory Committee — Please note date scheduled is Wednesday, October 30, 2024. If funded, the individual who has the authority to sign contracts and provide documents to the City of Port Orchard is requested to sign below; and to also acknowledge your responsibility to notify (enter who to notify and how) of any changes to your organization's contact information. Point of Contact Lo ["/k OaAlid_a�l� Title Q - _- �- Signature�(� Phone ��Q—a�1—Dc�-� Email co Yen (2wd e"Y-Mah'l ly�_ C c1 City of Port Orchard 2025 Lodging Tax Application Port Orchard Historic Theatre Foundation/Polaris Theatre A) Marketing Plan i. In 1924 the Knights of Pythias built a meeting hall at 820/822 Bay 5t. and then leased the lower part of the building to a movie theatre operator. This building, purchased inn 2021 by four local individuals/family members comprising the company Brigadoon Ventures in has ONLY operated as a movie theatre (with several closures over the years) and is now 100 years old making it the oldest theatre building in Kitsap county. Restoring and renovating the theatre is a significant capital expenditure and is a work still in process. In the short term, grant and community organization funding allowed us to create the Polaris Backstage Alley in what was previously a muddy, weedy, dumpster filled vacant lot (part of the theatre property). In 2024, through sponsorships, in -kind contributions and City Lodging Tax funding we were able to activate the Backstage Alley and provide entertainment, art, music, events and activities to thousands of individuals, families, tourists, students, artists and musicians through out 2024. ii. Until the theatre building can open as a: movie theatre, entertainment and music venue and venue for meetings, weddings and other celebrations - we will continue to provide entertainment, music, art and history activities and events for families, students, kids and individuals in the Polaris Back stage Alley. While many of our participants are local residents of South Kitsap, eager for and looking for entertainment , music and activities in Port Orchard, we have also promoted beyond Kitsap into all of Kitsap, Belfair, Gig Harbor, and parts of Pierce and King County. We are targeting all ages and economic levels, families, seniors and students - with an emphasis on art and music and historical presentations. In 2024, we hosted about a dozen musicians, about a dozen artists, a participative art activity, bingo games, a history/astronomy presentation, a outdoor family movie, a Haunted Alley, two Community Christmas events, with Karaoke and Carol singing, free popcorn events, service organization events, a beer garden, kids craft market and much more. Overnight stays are very difficult to gauge and difficult to recruit for --until our building is fully opened. Marketing to those outside of South Kitsap primarily through social media and boosted ads and through local Bed and Breakfasts is our only avenue. But in all honestly, at this stage of our not for profit theatre/venue restoration project- we are primarily serving the residents of Kitsap and nearby areas. iii. Marketing for our Backstage Alley events is done primarily through social media and some print materials, earned media, our website and our network of donors, supporters and community organizations and partners. Our Budget for next year's entertainment, music, art and other activities is $7500. With an estimated 30% of total going to marketing of Backstage Alley events. Approximately 35% of our Lodging Tax request of $4000 is for marketing, the rest to pay for entertainment, supplies, materials and other expenses. -1- The 30% of Lodging tax funds for marketing will be used as 60% for social media marketing and 40%for printed materials. B) Financial Status i. The Port Orchard Historic Theatre Foundation continues to apply for and receive funding from foundations, grantors, organizations and corporations for the renovation and restoration of this historic 100 year old theatre. We have not applied to other sources for the Backstage Alley events, activities and marketing, as our other focus and efforts is for the very large capital budget we are fund raising for to restore and renovate the theatre. We have received in -kind support from area businesses for those events and activities in 2024. ii/iii. In addition, to our own activities and events, entertainment and presentations, the Port Orchard Theatre Foundation has made a concerted effort to participate and engage in all other activities in downtown. Our collaborations also includes in -kind contributions, shared marketing and other support from organizations such as Port Orchard Farmers Market, Port Orchard Bay Street Association, Fathoms O' Fun, Port Orchard Ford, Love Kitsap, John L. Scott, Lowe's to name a few. In return, the theatre has helped market downtown and other organization events on our theatre building marquee for the greater good of our community. iv. In the future, when we are able to open this venue and make it fully operational (estimated for mid 2026) we may continue to apply for LTAC for more targeted marketing of the venue and much, much bigger music, comedy, cinema and other types of activities and events. However, we will also then have a source of funding through admissions/tickets, concessions, wine and alcohol sales and venue bookings, as well as continued support from donors, supporters and grantors. v.. If we do not receive all of the funding requested for our 2025 activities, entertainment and events we would either scale back on such events or try to seek other local sponsorships. 90% of our fund raising efforts are going to and must go to the capital needed to complete the restoration and renovation of this very important, historic 100 year old theatre building in the heart of our City. This venue wit[ be a much needed addition to downtown Port Orchard, available for musicians, comediennes, weddings, other private parties and functions, organization meetings and conferences, small stage shows, educational presentations, student activities, film festivals and of course movies. And it is also our intention to provide access to as many of these activities and events, especially movies to income challenged families and youth. The Polaris Theatre is a much needed space. There is no movie theatre in Port Orchard or South Kitsap. There is almost no available meeting/presentation/event space. The theatre will be a complimentary partner to the City of Port Orchard Community Event Center when completed. It is anticipated the completion of our small venue will precede the community event center completion by several years. -2- C) Reporting Requirements L We anticipate serving at least 3000 individuals at our 2025 events and activities. ii. We estimate only 30-50 will stay overnight. Iii, We estimate 100 will travel 50 miles or more. We are not abte to estimate how many will come from other states or countries, if any. iv. Our programs and events are free to participants so we will not generate any revenue. v. We hope to collect zip codes. We hope to create a passport of sorts that will help capture information about our attendees/participants. We had planned to do that in 2024, but did not. Social media ads and digital ads and boosting can provide some metrics on engagement. -3- 441ucj" ti - bda? City of Port Orchard 2025 Lodging Tax Application Port Orchard Historic Theatre Foundation/Polaris Theatre Backstage Alley 2025 Entertainment/Events Budget Our top 3 funding priorities are Entertainment/presentation expenses (musicians/art activation/speakers); marketing (print/social media/advertising) and supplies/ materials Expenses Entertainment $3250 Marketing $2250 Materials/Su ppties/Misc. $2000 Total $7500 Revenue City of Port Orchard LTAC $4000 Sponsorships $2500 In Kind contributions $1000 Total $7500 in W. MAI MOVIE NIGHT SPONSORM SY JOW E SCOTT - KlTSAP A.M GJa HAAB0R AEGEOKAL OFFICE S PORT OACHAAD FORD r SATURDAY. SEPTEMBER 7TH MOVIE STARTS AT 7.30PM ,......... ...... ... ... . ............ � ►EA1�li/i[1 ; • ADDRESS RAFFLE PRIZES W% . 1215 BAY STREET : POPCORN/CANDY PORT ORCHARD VENDORS ............ .............. Jm E uxn - uur r ac Wt Kmm offm no -in -moo 48 Iohn L. FORD REAL ESTATE _ , A. 01.r k-� 4� A �"rlrl"k -P r " History of the Theater at 822 Bay St: 1924 - 2021 Prologue 1914: Harry Ward, the diligent photographer of Port Orchard, opens a moving picture theater with his wife, the former Mary Sivins from Pork Townsend. It was in the Applegate Building at 731 Bay St. and was called Star Liberty Theater. The first film shown was the `Perils of Pauline'. The Polk's Bremerton & Kitsap County directories for 1920-21 and 1923-24 both list the name of the theater as just `Liberty Theater'. 1919: Harry Ward sells the Star Liberty Theater. The buyer was Harry Howe, 1920: Harry Howe tried for about a year to make a go of it before selling out to J.A. McGill. 1920-1924: J.A. McGill operates the theater at 731 Bay St. The name changes to McGill Theatre as that name is found ops photo #299 at the Sydney Museum and Arts association. The photo is labeled "1920' and was probably taken by harry Ward. * Chapter 1 1924-1928: Knights of Pythias build a meeting hall at 820-822 Bay Street and then lease the lower floor as a movie theater. The first operator at this location was John McGill. The theater name changes to Community Theater during this time. 1928: Rex Thompson and J.G. Beckman but the theater from McGill and later names it the D&R after Thompson's twin sons, Don and Ron. McGill moves his theater operation to Annapolis Hall. Thomp- son and Beckman completely refurbished and remodeled the interior auditorium and had a gala grand opening on May 5, 1928 with the showing of `West Point', a a "snappy, scrappy, always happy" film of football, romance and military life with William Haines and Joan Crawford inn the starring roles. When the theater is renamed it soon gained a neon sign, which was new technology at the time. 1965: The D&R closes down. Towards the end of the D&R period lack of maintenance and problems with drainage caused it to acquire the nickname Dirty & Ratty. Virgil Reames at the Sydney Museum recalls this time but remembers that his group called it the Dirt & Rat, and remarked that the front three rows were blocked off due to flooding on very high tide days. 1965-1980: The theater is dark, boarded up. There was some use for rummage sales and as a gym for a youth boxing program. 1980-1996: Theater operates as Plaza Twin Theater, first under the ownership of a group of 13 Port Orchard businessmen including Robert `Bob' Gieger. Remodeling includes glass doors, aggregate paving in front, a new ticket booth, seats, curtains and a chipped marble surface in the entrance. Used seats are from Seattle's Northgate Theater. The building was purchased at this time form the Knights of Pythias for $50,000 and remodeling costs came to $200,000. These renovations tale care of the old dirt and rat and damp. Drainage is repaired. The city puts back flow preventers in place to stop high tide form forcing water back into buildings. 1981: South Kitsap Mall (renamed Towne Square in 2005 by new owners) opens on Mile Hill with the first escalator in Kitsap County. This marks a turning point for Plaza Twin as shoppers start to turn away form coming downtown to shop. 1990: South Sound Cinema 10 opens. `Things were good. Then, in 1990, the 10-screen South Sound Cinema went in top on Mile Hill. The Plaza, which was only licensed for second -run flicks, just couldn't compete. Around 1996, it was getting pretty skinny.' - Robert Geiger 1996-2005: Bob Geiger acquires sole control of Plaza Twin Theater. 2005 May: Plaza Twin closed by Bob Geiger. 2007 October: Jeff Brein and Sam Granato announce reopening theater as The Orchard. 2007 December: Orchard Theater opens after spending $50,000 on renovations and shows mostly independent and foreign films. 2010: Far Away Entertainment owner Jeff Brein closes Historic Orchard Theater. It was open for 3 years. 2011: Theater becomes Dragonfly Cinema and becomes known for showing independent films and cult classics. 2019 May: The Dragonfly Cinema closes. 2021 July: The building is purchased from Robert Geiger by a group of four locals, Joshua & Sarah Johnson, Steve Sego, Coreen Haydock) under the LLC Brigadoon Ventures with the intention of form- ing a nonprofit and fundraising to renovate and reopen the nearly 100 year old theater. 2021 October: The nonprofit 501 c3 organization Port Orchard Historic Theatre Foundation is created and the theater is renamed POLARIS Theater - paying homage to the North Star which has been used by mariners to navigate for thousands of years. Work begins to clean and renovate the entire theater and lobby, restoring the theater space to a single screen and stage venue as it was until 1980. 2021 November: The Cowlitz Tribal Foundation awards the theater a $50,000 grant to begin major renovations and improvements. 2022 .tune: South Kitsap Rotary & Port Orchard Rotary clubs collectively contribute $50,000 to the creation of a new outdoor theater space designed to be a gathering and performance space available to a myriad purposes public and private. The space is named `Backstage Alley'. 2022-2023: Fundraising through grants, Kitsap Great Give donations & individual contributions have totaled over $140,000. 2023 September: Phase 1 of the Polaris Opening remodel is Completed as Backstage Alley is opened to public. A brand new 1000 sqft gathering and performance space on the exterior portion of the thea- ter lot welcomes donors and honored guests for a Sept. 6th opening reception. Part Orchard Historic Theatre Foundation Statement of Financial Position As of October 23, 2024 TOTAL ASSETS Current Assets Bank Accounts BUSINESS CHECKING (0001) - 1 52,649.11 Total Bank Accounts $52,649.11 Accounts Receivable Accounts Receivable (A/R) 2,475.00 Total Accounts Receivable $2,475,00 Other Current Assets Payments to deposit 0.00 Total Other Current Assets $0.00 Total Current Assets $55,124.11 Fixed Assets Leasehold Improvements 141,043.55 Total Fixed Assets $141,043.55 TOTAL ASSETS $196,167.66 LIABILITIES AND EQUITY Liabilities Total Liabilities Equity Opening balance equity 100.00 Retained Earnings 156,222.95 Net Revenue 39,844.71 Total Equity $196,167.66 TOTAL LIABILITIES AND EQUITY $196,167.66 tIrla`M A 4k tk� f" Port Orchard Historic Theatre Foundation Profit and Loss by Tag Group January 1 -October 23, 2024 TOTAL Revenue Contributed income Corporate & foundation grants 550.00 Donations directed by individuals 56,974.99 Total Contributed income 57,524.99 Total Revenue $57,524.99 GROSS PROFIT $57,524.99 Expenditures Advertising & marketing 690.93 Licensing Fees 170.00 Social media 194.16 Total Advertising & marketing 1,055.09 Insurance 1,614.05 Occupancy Utilities 2,485.60 Total Occupancy 2,485.60 Office expenses Bank fees & service charges 1.00 Internet & TV services 2,233.12 Merchant account fees _55.86 Office supplies 4,627.06 Shipping & postage 222.00 Total Office expenses 7,027.32 Payroll expenses Salaries & wages 3,Q73.92 Total Payroll expenses 3,073.92 Supplies Supplies & materials 2,424.30 Total Supplies 2,424.30 Total Expenditures $17,680.28 NET OPERATING REVENUE $39,844.71 NET REVENUE $39,844.71 �I y� r,-1 kk AF-I- a,� AYer Port Orchard Historic Theatre Foundation Statement of Financial Position As of December 31, 2023 TOTAL ASSETS Current Assets Bank Accounts BUSINESS CHECKING (0001) - 1 13,659.40 Total Bank Accounts $13,659.40 Accounts Receivable Accounts Receivable (A/R) 2,475,00 Total Accounts Receivable $2,475.00 Other Current Assets Payments to deposit 0.00 Total Other Current Assets $0.00 Total Currant Assets $16,134.40 Fixed Assets Leasehold Improvements 140,188.55 Total Fixed Assets $140,188.55 TOTAL ASSETS $156,322.95 LIABILITIES AND EQUITY Liabilities Total Liabilities Equity Opening balance equity 100.00 Retained Earnings 116,932.25 Net Revenue 39,290.70 Total Equity $156,322.95 TOTAL LIABILITIES AND EQUITY $156,322.95 � 1 v�A4- cat A-#ac. nxa� -ro ml Port Orchard Historic Theatre Foundation Profit and Loss by Tag Group January - December 2023 TOTAL Revenue Contributed income Corporate & foundation grants 1,000.00 Donations directed by individuals 32,435.22 Grants from other nonprofits 10,000.00 Total Contributed income 43,435,22 Sales 1,857.83 Services 3,975.00 Total Revenue $49,268.05 GROSS PROFIT $49,268.05 Expenditures Advertising & marketing 1,258,91 Licensing Fees 10.00 Total Advertising & marketing 1,268.91 Contract & professional fees Fundraising fees 1,050.00 Total Contract & professional fees 1,050.00 Insurance Directors & officers insurance 667.00 Liability insurance 546.00 Total Insurance 1.213.00 Occupancy Utilities 3,115.01 Total Occupancy 3,115.01 Office expenses 357.40 Memberships & subscriptions 90.00 Merchant account fees 280.48 Office supplies 272.46 Shipping & postage 216.00 Small tools & equipment 407.11 Total Office expenses 1,623.45 QuickBooks Payments Fees 50.53 Supplies Supplies & materials 1,656.45 Total Supplies 1,656.45 Total Expenditures $9,977.35 NET OPERATING REVENUE $39.290.70 NET REVENUE $39,290.70 Form 990-N ELECTRONIC NOTICE (e-Postcard) For Tax -Exempt Organizations Not Required to File Form 990 or Form 990-EZ. 2�'23 ©pen to.Public � information about Form 9i30.N is 0t www irs-gor/charrGes�an-profilslannua!-electmnrc-filing-requiramenf-far-small- Inspection ezemptoryantzatians-forrrr-S90-n-e-pgstcard. NOTE: This is not an IRS form. This form was created by Drake Software and is intended for information purposes only. Do NOT mail this form to the IRS. A. Tax Period: Start: 01-01--2023 Ending: 12-31-2023 B. Employer identification Number (EIN) 87-2137932 C. Legal Name: PORT ORCHARD HISTORIC THEATRE FOUNDATION 0. Mailing Address: PO BOX 1269 PORT ORCHARD, WA 96366 E. Doing Business AS: PORT ORCHARD HISTORIC THEATRE FOUNDATION F. Gross receipts not groatar than: $50,000 G- Organization has terminated; H. Principal Officers Name and Address: BRENNAN BAGLIO 3780 SE MILE HILL DR PORT ORCHARD, WA 98366 I. Website URL; 990 N.I.D