Business Case for a New Art Museum in Shepparton

Minifie, P and van Schaik, J 2015, Business Case for a New Art Museum in Shepparton, Simon McArthur Associates, Shepparton, Australia


Document type: Commissioned Reports
Collection: Commissioned Reports

Title of report Business Case for a New Art Museum in Shepparton
Author(s) Minifie, P
van Schaik, J
Year of publication 2015
Publisher Simon McArthur Associates
Place of publication Shepparton, Australia
Subjects Architectural Design
Abstract/Summary The Shepparton Art Museum (SAM) is significantly constrained by its location and building. It is not located on a major thoroughfare, and passing trade is minimised as a result. The building is small which limits operational flexibility and the opportunity to present larger exhibitions and provide social and engaging spaces for activity. Demand cannot be met for more interactive experiences, larger exhibitions, functions and events and the existing building cannot be expanded to meet these unmet needs. The current SAM is owned and operated by the Greater Shepparton Council. Council is in charge of all operational aspects, including the budget, financial performance and employment of staff. A Museum Director reports to the Council's Director of Community. Council currently subsidises SAM by approximately $1M in cash and $0.25M in kind, per annum. The recently established SAM Foundation is the first innovation beyond the traditional local government run model. The main role of the SAM Foundation is to source funding to assist and enhance the performance of SAM. The current governance model for the existing SAM with strong City Council oversight is not best practice for encouraging innovative SAM management or grants of art or funding for new acquisitions from private benefactors. Problems with the existing governance model have come to a head with the provisional offer of a major Indigenous art collection, if the current governance model is overhauled. The existing SAM runs at an operating annual deficit after direct and indirect revenue and direct and indirect expenses of around $1 million per annum. This operating deficit varies with the cost of visiting exhibitions, visitation and other operating variables. Art museums in other regional areas of Victoria, attract higher visitation and make a greater contribution to the local economy.
Commissioning body Greater Shepparton City Council and Regional Development Victoria
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