Save Hermann’s Jazz Club
We have until October 30th to raise the $3,000,000.00 needed to purchase the three companies which own the Hermann’s building and operate Hermann’s Jazz Club. This is a once in a lifetime opportunity to keep Hermann’s Jazz Club alive forever.
Now is the time to help the Jazz On View Society realize our goal and enrich lives forever. The Campaign to purchase Hermann’s Jazz Club seeks to raise $3 million in donations. Please join in this campaign and provide as generous a gift as you can.
In May the Estate of Hermann Nieweler offered the Jazz On View Society a six-month option to purchase for $3 million. This allows only six months to raise the support we need to continue this operation in its current location. Failing this the building will be sold.
By owning the building as a whole, Hermann’s Jazz Club will secure its location with a sustainable rent. The returns to musicians will improve. The restaurant will operate in a way that contributes to further improving the venue. The other two establishments will be rented, and the revenue beyond expenses (triple net and improvements) will grow an endowment: a foundation for music. Hermann’s will become a self-sustaining entity – with no need to apply for grants or continuously fundraise to support its ends.
There are other opportunities with this building that are exciting. The venue upstairs is another achievement of Hermann that few have witnessed (beyond previous Night Club attendees). A 6600 sq/ft, 400 seat “cabaret” venue, in three portions, with thirty foot high red theatre arch ceilings. This is currently vacant. We have an agreement with the family to collaborate in finding the best tenants for this space. Doing so will help everything we do. we are actively speaking with the community about the opportunities presented.
Hermann’s is a remarkable institution.
The Club generates over $350,000 annually directly to musicians: if our doors close this economy will be disbanded. Last year Hermann’s hosted over 400 live shows – second only perhaps to the Festival international de Jazz de Montréal. We are an all-ages venue, and maintaining performance opportunities for youth is forefront to our mandate. After thirty-seven years we have an established, dedicated, enthusiastic community who actively participate in our culture, and hope to see it continue for other generations.
The six month timeline for this initiative is challenging. In order to reach this goal a non-profit/for profit combination is envisioned. Perhaps a benefactor of the arts will immediately step forward and singlehandedly complete our vision, permanently endowing a home and fund for Jazz…failing that there is a lot of work to do.
In the first three to four months Jazz On View Society is assessing the level of support that can be realized from the community at large. The remainder of the time will be needed to structure how the final investment will operate.
Pledges of support are urgently requested.
These pledges will make up the charitable contribution to this initiative. The more money that it raised through charitable means the higher the return is to the Society in delivering its mandate.
Investment options will be discussed. There are multiple ways that this can be achieved – from an assignment to a sympathetic landlord; to a syndicated mortgage; a Community Contribution Company; shareholders…
What is needed now is for people to openly discuss their interests and abilities. It is well worth our time to share information and ideas in moving this forward.
As we are acting in the position of a charity we understand that transparency is important. Here are the numbers to support our cause.
The current bottom line for Hermann’s Jazz Club is $3000/month rent. We have been forthright that the venue exists because Hermann operated the entire building. It is understood that the restaurant itself is encumbered by the venue, as it is open to host one seating per day (two on Sundays). We don’t operate our bar license as a bar, we do not rely our patrons to drink, or to leave their tables when their meals are finished. The premise of the business exists as Hermann built it – again and again – for his music loving customers.
What $3 million dollars investment returns each year:
o Security of the incomes currently generated for musicians ~$350,000/a
o The removal of the $2/ticket room fee paid by musicians ~$30,000/a
o $24,000 in sublease income for improvements to venue
o An achievable rent – permanently endowed
o Control over the activities of adjacent businesses (noise conflict)
o The room which provides:
Access to all-ages
Access for people with mobility issues
A near-by parkade – with free evening parking
Great acoustics, with an established stage and audience seating
Restaurant and Licenced facility
Rich history and an established performance roster
What $3 million dollars investment saves each year:
o $72,000 rental expenses
o The cost of retaining a fundraiser/grant writer ~$24,000-30,000/year
What $3 million dollars investment accrues each year:
o Net rental income of $130,000/a
o No exhaustion of initial investment – increase in property value exceeding amortization.
TOTAL BENEFIT – $630,000/year