Clemens Center

The Project

The Clemens Center, which has been in operation since 1977, is operated by Chemung County Performing Arts Inc., a 501(c)(3) nonprofit corporation located in Elmira, New York. The Clemens Center consists of the Powers Theater, a 1,608-seat proscenium theater, and Mandeville Hall, a 200-seat black box theater.

Since the Clemens Center opened in 1977, the industry standard for stage depth has changed, as has standards for work areas, dressing rooms and technology. Current shows have specific facilities requirements. The ability to continue to book these large-scale theatrical productions is crucial to the Clemens Center’s future economic stability but is dependent on the stage expansion and technical upgrades of the project.

The project qualifies for historic rehabilitation tax credits, but requires the further subsidy of the NMTC financing in order to complete the required upgrades. Without the financing and the necessary upgrades the center could be forced to close, eliminating a vital center for arts and cultural events in the community.

Project Financing

UDF provided 2 loans totaling $15 million for the renovation of the Clemens Center. The loans have numerous advantageous features, including a below-market interest rate, longer than standard period of interest only payments, below market origination fees, and others.

A major gap in sources and uses for the project was a result of the recent economic downturn. Anticipated state and federal government funding never materialized, resulting in debt funding which resulted in excessively high demands on future cash flows including required payment of principal on the short term debt used to replenish funds lost from committed grants which defaulted. Where possible, donors increased commitments but a large gap remained for which NMTC financing was needed. UDF’s loans included a very low interest rate which allowed to renovation to move forward without jeopardizing the Center’s future with extremely high debt service.

Community Impact

The Clemens Center is located in a severely distressed census tract with a 49.9% poverty rate and median income that is only 31% of the area median income. The area has an unemployment rate that is 6.4x the national average.

The Clemens Center’s mission is to enhance the quality of life for all the region’s residents by providing a diversity of excellent performing arts programming in a superior facility. Each year, the Center subsidizes programming by $600,000 to $700,000 to reduce ticket prices to schoolchildren and adults, as community outreach. Over 15,000 schoolchildren and perhaps double that number of adults are the beneficiaries of subsidized programming.

Through this construction project, the Clemens Center will create nearly 300 jobs, generating almost $10 million in employee compensation. It will also act as a catalyst for other downtown projects, including restoration of the Promenade and the mixed-use redevelopment of the Rosenbaum building. Once complete, the Center will generate $87 million in economic activity, increase total employee compensation in the region by $19 million and provide 145 local jobs.