With all the pathos and drama of an Edward Albee play, a full house of supporters gathered on August 25 at Suze’s Prescott Center for the Arts to express real anger, tears and angst at news of the 52-year-old organization’s final act. Its board explained why the nonprofit would close at the end of September.
Most of the five board members took office in February or later, after the organization reported that it was in dire financial straits and would need $3 million to retain ownership of the property. Despite its efforts, the board was unable to find a financial savior to keep PCA from folding. In the meeting they related how they met with large donors seeking a financial lifeline, but because of a series of decisions the nonprofit made in building a new theatre that in hindsight were ill-advised, all declined to help.
The beginning of the end traces back to the decision to build a new theatre on the property. Construction began in 2019, and by the end of the Covid crisis materials took longer to obtain and costs had doubled, dragging out the construction process, which led to more costs. The Studio Theatre eventually cost $4.3 million to build.
The group took out a $1.8-million loan with a balloon payment so it could finish the building. When the balloon payment came due in 2023 the group was unable to raise the money to pay it. Rather than foreclose, the bank found an investor to buy the building in January of 2024 and lease it back to the group. The terms of the agreement involved monthly payments of $18,000, which the group was unable to afford. It has been in arrears on its lease since May.
The two-hour meeting answered many but not all the questions of attendees, who found it difficult to understand how the group had reached its ultimate demise. Part of the group’s rationale for pursuing the construction of a new, smaller theatre was to bring in more money due to ongoing shortfalls in year-over-year income dating back to the 2013-2014 theater season. Cash reserves in 2016 were around $500,000, but they were depleted by 2017. Arts groups typically operate hand-to-mouth, depending largely on donations and grants to survive. Income from performances rarely covers operating costs.
One of the attendees asked, “Why didn't you raise your ticket prices, and why did you go too long into debt to build a new theatre if the old one wasn’t making money?” Board members couldn’t answer those questions because they weren’t involved in the decision-making of prior boards, which were guided by Executive Director Robyn Allen, who retired in 2023.
A former board member said the group sought to raise $1 million toward the new building for smaller productions, following the advice of a consultant after a $50,000 study on how to increase income. Whether the $1 million or only $325,000 was raised was subject to debate. (The consulting firm charged $121,000 for the capital campaign and took on another client, then PCA fired it.) PCA then gained a $3-million donation in 2020 from an anonymous donor whose only stipulation for use of the funds was to name the organization after “Suze.”
Another member of the audience asked why PCA didn’t restore the row seating in the main theatre, which had been replaced during the pandemic with cabaret seating, cutting its income. No one had an answer. Many questions highlighted the lack of financial transparency, even among those who were involved with the group’s productions. Don Langford, who’d been involved with PCA for decades, said he asked for a copy of the budget but was rebuffed. He noted that the executive director got raises year after year, despite persistent operating losses.
Board member Kristin Glasser compared the situation to a Rashomon story, because everyone saw the demise of PCA from a different perspective. “We’re all probably left with more questions than answers,” Glasser said.
Michael Holevar, who reviewed the financials and answered many of the questions, said that he didn’t think there was any malfeasance involved in the nonprofit’s collapse, but in response to an audience question revealed that the its books had not been subject to an audit since 2016. A few people suggested a forensic audit, but a retired accountant in the audience estimated that one would cost $40,000-50,000. At the time of the meeting PCA had $6,000 in the bank.
“The meeting itself was productive because it was about airing grievances,” said John Duncan, who joined the board a month earlier to see if he could help. (He is also the publisher of 5enses.) He had wanted to assist with writing grants, but the group hadn’t filed a 1090 tax form since 2022, making it impossible to apply to most grantmaking organizations. “I’ve been a part of this building since before I was born, because my mother was pregnant with me when she was involved,” Duncan said. “It breaks my heart.”
Liberty Longwood, a Prescott High School student, expressed her thanks to those who influenced her life through PCA productions.
“I’m just really thankful I got to be part of this, and I got to be a part of Footloose and be part of Jersey Boys. So I'm very thankful to Scott Neese and all of you, and just don't lose your hope on a community of art, because it’s important in this world.”
Jay Ruby, founder and director of the Carpetbag Brigade Physical Theatre Company, said that it’s a devastating loss for the local arts community.
“There’s a disturbing trend in Prescott of arts spaces disappearing to commerce,” Ruby said. “The Granite Creek Performing Arts Center, known as the Sam Hill Warehouse, is now a Hilton Garden Inn space. Are we facing a takeover of our last (nonprofit) center for the performing arts in Prescott?”
In the meeting Barry Barbe, owner of El Gato Azul and Torme restaurants, said he has been a member of the community for 26 years and his children have been involved in performances. “This is the heart and soul of Prescott culture going away,” Barbe said.
While many people expressed hope for a last-minute rescue, the SPCA board gave up hope at the end of the month.
Rumors of an effort to purchase the property by a group of investors led by Barbe circulated in late September. When reached by phone, Barbe said he couldn’t comment on the rumor, but offered this thought: “Despite the outcome of the situation, I think my goal is to establish and maintain a community theatre in Prescott that’s available to everyone and to allow experiences that foster community in the arts. Community theatre is not only about performances, it’s about giving to the community our talent and our time. It’s about giving of ourselves … it’s about being human and how we interact."
