Ambassador Theater’s Reduced Floor Area Transfer Impacts Theater Subdistrict Fund

The Theater Subdistrict Council’s Governance and Audit Committee met to evaluate the impact of decreased floor area transfers from the Ambassador Theater on its funding. Recent changes to the planned transfer, initially set at 81,000 square feet, will result in a reduced contribution of $1.4 million to the Theater Subdistrict Fund.

In 2022, the City Planning Commission approved the transfer of floor area rights from the Ambassador Theater, which was expected to generate about $2 million in funding. However, the Shubert Theater Group later requested reductions in the transfer amounts, leading to two modifications: first, to 77,000 square feet for approximately $1.9 million, and subsequently to 56,580 square feet for the latest figure of $1.4 million. Despite these reductions, officials indicated that the Shubert Group plans to expedite the deposit of this adjusted amount, potentially stabilizing the subdistrict’s finances shortly (Source: https://youtu.be/Q0f34mHDT0o&t=2779).

The budget discussion for Fiscal Year 2026 projected a modest net change of around $99,500 in the Theater Subdistrict Fund, which would lead to an estimated year-end balance of $169,800 if adopted without objections. Committee members expressed concern regarding the potential effects of decreasing funding and whether it would limit grant-making capabilities in the future (Source: https://youtu.be/Q0f34mHDT0o&t=2259).

With total potential funding amounting to nearly $34.9 million, there are ongoing discussions about whether to allocate funds as they arrive or to establish a permanent financial reserve to facilitate long-term funding for theater initiatives. The committee is weighing these options carefully to maximize the impact of available funds while adhering to investment guidelines that demand safety and liquidity (Source: https://youtu.be/Q0f34mHDT0o&t=3640).