The August Wilson Center in Deadline to Pay Debt

The August Wilson Center to bide time, got a loan from the Urban and Redevelopment Authority (URA) and two grants. The URA gave it a $2 million loan. The Richard King Mellon gave $1.3 grant. Also, another grant came from Kresage Foundation in Troy, Michigan. These all lower the debt to$5 million from $11.2 million. The $11.2 million debt was used to building part of the $42 million the center used to build it.

The August Wilson Center is going to have, in order to raise money for their debt, more programs. It’s going to do catering (I think at events held at the center) and give tours of the center. Parente Board, from downtown Pittsburgh member Ken McCrory, “It’s harder to raise money to pay off debt to  than to build something. That’s all fun and dandy.

Adre Guess  President and CEO of the August Wilson Center announced that the center is going to have fund raisers to get out of debt It received $11.2 million from banks with the leading bank being Bank Of America.

The banks set a deadline  for the money to be paid back by the end of December 2011. Since it still owes $5 million and it doesn’t have that much money, they got a special extension until February to renegotiate the bills.

The center will bring in more than $2 million by giving naming rights to things inside the center. An example would be the theater that has 486 seats.

The Center operates with 85% of its money for outside sources and makes $15 % of its own money.

J. Keven McMahon who is President and CEO of the Pittsburgh Cultural Trust. Speaking about the URA  loan and two grants says, “These grants are very significant indicators and will serve as a positive indicators and will serve as a positive indicator to others who are waiting  to step up and add to their support. The Pittsburgh Foundation spokesman John Ellis said, “The August Wilson Center is a critical part of Pittsburgh’s  cultural landscape and we hope and believe this will help their plans for a long term sustainability.”