Big debt, big questions | Durham County | Indy Week

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Big debt, big questions

The breakdown on the Durham Performing Arts Center

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What is the total project cost?
An estimated $46.8 million.

What does the city owe?
With interest, an estimated $67.8 million.

How will the city pay for DPAC?
Durham has borrowed $33.7 million in the form of certificates of participation, privately invested bonds. The city will repay this debt with a budgeted annual installment of $2.5 million, for the next 28 years.

What are the funding sources for the annual $2.5 million payments?

  • Hotel occupancy tax: $1.4 million
  • Naming rights: $800,000
  • Facility fee: $100,000 ($1-$1.50 per ticket)
  • Parking revenues: $100,000
  • Downtown fund: $100,000
  • What other costs are involved?
    In addition, the city owes more money to the construction company, Skanska USA Building. The funding sources and amounts are as follows:

  • $1.96 million construction fund interest earnings
  • $2.75 million occupancy tax proceeds collected before construction
  • $5.5 million Duke University contribution to DPAC
  • $570,000 real estate earnings from sale of former Durham Area Transit Authority site (DPAC location)
  • $100,000 operator funding
  • $248,000 pre-design funding
  • $2 million other sources**
  • ** Additional contribution from Duke University, not specifically for theater, but chosen by city to go toward project.

    Source: City of Durham

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