Cody Castello, president and chief operating officer of Alaska Center for the Performing Arts Inc. (ACPA), told an Anchorage Assembly work session that the nonprofit operator of the Municipality-owned performing arts center (the PAC) is asking the Municipality to increase the annual municipal management fee from $1,580,000 to $4,000,000 to stabilize operations and address urgent facility needs.

Castello said the facility faces decades of deferred maintenance and failing technical systems that threaten the PAC’s ability to host large productions and serve resident companies. “The infrastructure is failing, but the mission has never been more vital,” she said, and added that without refreshed operating support and a separate capital strategy the nonprofit’s ability to operate and expand programming will remain constrained.

The request is part of a broader plan ACPA presented to the Assembly that combines a management-fee increase with additional earned and contributed revenue targets. ACPA’s presentation included a target total annual operating budget of $8.5 million to $9.5 million over several years, and Castello said the $4 million management fee is intended to fund a more proactive repairs-and-maintenance program, hire development staff to grow philanthropy and earned revenue, and stabilize day-to-day operations. She stressed that the management fee would not replace the need for a dedicated capital replacement program led by the facility owner.

Why it matters: ACPA told the Assembly the PAC supports eight resident companies, education and youth programs, and downtown economic activity. Castello said the PAC produces local economic impact and that lost large-scale programming would reduce school matinees, audience services and spillover spending at restaurants and hotels. The nonprofit also cited Broadway touring shows as an important revenue and audience-builder; ACPA paused its Broadway program for the 2025–26 season to “recalibrate” while it addresses facility limitations and market risks.

Capital and technical problems described in the presentation include failing HVAC and electrical systems, an aging rigging and fly system that limits production capabilities, water infiltration into lower-level spaces and the freight-elevator piston shaft, original seating and lighting fixtures that no longer meet modern standards, an original fire panel that is scheduled for replacement, and accessibility barriers across public spaces. Castello listed an initial rough order of magnitude for “critical remedial work” and said the total deferred-maintenance and modernization needs amount to “tens of millions of dollars.”

ACPA said approximately $1.9 million in the capital reserve is already designated for a fire-alarm and elevator Phase 1 project, but that most of the reserve was built by ACPA and is intended as an emergency safety net rather than a long-term capital plan. Castello also said the freight elevator modernization was funded but, because of procedural timelines, is expected to be completed next summer and that mitigation steps are in place to avoid season disruptions until then.

Accessibility and safety issues were emphasized. Castello told the Assembly the facility lacks interior accessible connections between key public spaces, has limited accessible passenger drop-off options, and needs an updated ADA assessment; she said ACPA hopes to complete an ADA study in September. Castello also described a weapons-detection system funded by a Department of Homeland Security grant and other safety investments made since reopening after COVID-19.

On funding sources, Castello said ACPA has pursued philanthropic and federal program support in the past but has not historically relied on large federal grants; she said Broadway and national touring partnerships have helped expand audiences but that Alaska’s higher logistics costs and a smaller market complicate attracting and underwriting touring shows. ACPA referenced a national Broadway touring study in its economic-activity rationale and said prior national and regional partnerships (including Nederlander for national tours) had driven major events in recent seasons.

Next steps ACPA outlined for the coming months include an initial assessment presentation to the ACPA board and the Municipality on August 4, an updated management agreement and fee modernization targeted for ACPA’s board on August 28 and submission to the Municipality for the municipal budget process by September 1, and a fundraising event on September 20 for capital-campaign readiness. Castello said ACPA intends to provide the Assembly and resident companies with updated financials and a recommended campaign framework by December.

Assembly members asked questions about specific code and contractual requirements for touring productions, whether the PAC had pursued National Endowment for the Arts funding and other federal support, and how much of the PAC’s audience comes from outside Anchorage. Castello said the Broadway program drew attendees from more than 91 Alaskan communities and that some productions brought 15–20% new patrons who had not previously attended the PAC.

No formal municipal action or vote was taken at the work session; ACPA’s presentation was a request for updated budget and management-agreement consideration during the upcoming municipal budgeting cycle.