Lease Negotiations and Festival of Arts

Your editorial “Culture Also Needs Cash” (May 18) contains misinformation and illogical conclusions regarding the lease negotiations between the City of Laguna Beach and the Festival of Arts.

The editorial states that the city receives 70% of the “sharable funds.” That statement ignores two salient points: First, the definition of “sharable funds” excludes the $393,326 in net revenues retained by the festival in 1985. If that amount were included, the city’s share would be 40%. Actually, the ratio of city’s receipts compared to direct contributions/scholarships by the festival has steadily declined over the last 20 years from an average of 82% to 67%.

The editorial states that increasing operating costs of the festival have been cutting into contributions and scholarships. That isn’t true. The festival’s direct contributions/scholarships (much to the credit of the Festival of Arts) have increased from $9,824 in 1966 to $155,129 in 1985, almost a sixteenfold rise. By comparison, the city’s rental receipts have increased sevenfold.

The editorial remarks that Laguna allocated only $17,000 of its rental receipts for art organizations. Actually, $24,300 went to art-related organizations. It appears that the figures in your editorial exclude the Arts Commission.

The editorial compares contributions by Laguna Beach with those of Santa Ana, Costa Mesa and Newport Beach. Because of the museum in Santa Ana, it is difficult to compare Laguna Beach with that city. By comparing the population and municipal wealth as measured by sales tax receipts, our level of support to the arts is very comparable.

The editorial fails to mention that 1985 was, financially speaking, the most successful in the history of the Festival of Arts. The festival netted $393,326 after all costs.

The editorial also ignores about two years of negotiations between the city and the festival over an extension of the existing lease. About 25 separate issues are involved. The city negotiators have discussed numerous concessions to the festival. It is unfortunate that The Times has become involved in this discussion without taking the time to thoroughly understand the entire picture.

MARTHA COLLISON

Mayor,

Laguna Beach