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Improv theater and others urge the commission to revisit 30‑year lease rule for capital grants
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Summary
Washington Improv Theater and Theatre Alliance representatives said the commission’s large capital grant rules — which require a 30‑year lease for organizations in leased space and impose a transfer tax — create barriers for small arts organizations seeking funding.
In public comment on July 21, representatives of Washington Improv Theater and Theatre Alliance raised concerns about the DC Commission on the Arts and Humanities’ large capital grant requirements, saying the rules may disadvantage smaller organizations that operate in leased spaces.
Mark Chalfant, artistic and executive director of Washington Improv Theater, told the commission that the current requirement that applicants in leased space secure a 30‑year lease is difficult to meet with many landlords. “One of the requirements is that an organization working in a leased space obtain a lease of 30 years. That's a tough thing to do with some landlords,” Chalfant said. He also noted an apparent inconsistency in the rules that only seven of those 30 years need to be in the future.
Shannara Gabrielle, artistic director of Theatre Alliance, also said the 30‑year lease requirement carries tax consequences. Gabrielle said, “the 30 year lease requirement also incurs a transfer tax, which is a bit of a punishment to the lessee in that circumstance.” She said a transfer tax can be applied for the entire length of the lease. The commission did not provide a legal citation during the meeting; Gabrielle described the transfer tax as a consequence tied to long lease terms.
Gretchen Wharton, vice chair presiding, responded that the commission’s process typically does not allow extended dialogue during public comment but acknowledged the rule was under review. “This 30 year issue is something we are looking at. We are aware of the challenges there and can't commit to if it'll be changed or not. We are looking to check,” Wharton said.
The comment period also included discussion of the capital grant program more broadly; staff reiterated the commission values a panel‑led competitive process. Chalfant said Washington Improv Theater plans to apply for the large capital grant despite the lease requirement and that the organization is relying on public funding to support its planned new space.
