Arts center deal raises issues

Lease negotiations for the Mielke Arts Center have uncovered areas of disagreement between landlord Shawano County and its tenant, the Shawano County Arts Council.

The county wants the arts council to pay more utility costs at the facility — potentially several thousand dollars a year — and to curtail use of certain restrooms between stage performances.

The arts council has countered with a proposal that would require the county to pay rent whenever using the property for county government functions.

Although both sides voice optimism that a deal will be reached, the negotiations are putting a strain on a public-private partnership that has kept the Mielke Arts Center operating for decades.

Arts council officials are particularly annoyed by the county’s attempt at putting limitations on restroom access.

“We’re leasing the building,” council board member Ed Grys said. “You’d think we’d get to use the building.”

Added arts council president Mary Madsen of the restroom issue: “It’s really kind of silly.”

The lease negotiations on Thursday will land before the county’s public property committee, which must decide whether to endorse the changes proposed by county staff or whether to recommend a compromise with the arts council.

County Building Maintenance Director Steve Dreher, a member of the county’s negotiating team, said he is confident the two parties can settle the lease issue without any lingering hard feelings.

“There’s no animosity,” Dreher said. “Business is business. But we’re there to support the needs of our tenants as well as the taxpayers.”

For about 40 years, the arts council has leased the center at N5649 Airport Road as both the nonprofit group’s headquarters and the venue for such events as this weekend’s Shawano Folk Music Festival. It also is the site of stage plays, art exhibitions and community activities.

Built in 1975 at a cost of $140,000, the arts center was funded initially by the county, city of Shawano and private donations. The land had been donated to the county years earlier by Edwin Mielke.

The complex, covering more than 30 acres, today includes an indoor theater with seating for about 250 people, as well as dressing rooms, concession stands and outdoor performance stages.

Shawano County leases the property to the arts council for $1 a year. The county also maintains the building’s interior and pays 40 percent of the electricity and gas costs. The arts council donates $1 from every ticket sold for its events to a capital improvement fund maintained by the county.

With the current lease about to expire, the county proposes a new five-year agreement starting Sept. 1.

Under the county’s proposal, the arts council would become responsible for all utility costs, which would mean about $12,000 a year more in electricity and gas bills. The tenant has seen its share of utility costs climb from 12 percent to the current level of 60 percent over the past five years.

Arts council officials said the new utility cost increases would cut funding available for presenting stage plays and other events.

“We don’t think that’s reasonable,” Grys said.

The county also wants the arts council to refrain from using the facility’s main lobby restrooms except during public performance events. To save on cleanup and maintenance costs, the county wants to restrict bathroom usage to those available in stage performer dressing rooms.

The arts council responded with a proposal that would require the county to maintain outdoor areas of the complex, and also to pay rent for using the arts center. The county occasionally uses the property for management retreats, and Dreher said it could be needed in emergency situations.

The county dismissed the idea of paying rent.

“It’s our building,” Dreher said. “We’re not going to pay rent to use our own building.”

Grys said although it could seem odd asking the county to rent its own building, he said the county’s proposal would have the arts council paying utility costs so that the county could use the building free of charge.

“That doesn’t make sense, either,” he said.